Msci Inc (MSCI): ValueAct’s CEO Jeff Ubben Pushes for Board Seats; Says Has “Unanswered Questions”

Mr. Ubben also pointed out that Msci Inc (NYSE:MSCI)’s track record of value creating in the last couple of years has significantly underperformed in comparison with the company’s peers. Overall, the investors’ questions have not been answered clearly neither in the publicly disclosed information, not in the discussions with the managemen, which made the investor consider seeking representation on the company’s board.

However, the manager of ValueAct expressed his frustration with how the board handled the request for a board seat, saying that “we expected more effort and a more thorough process on the part of the Nominating and Governance Committee specifically and the MSCI board generally to educate itself on the ValueAct Capital governance track record and the support we have from shareholders, directors, and executives who have seen our work firsthand over the years.”

The investor added that he is concerned about the board’s independence from the company’s management and suggested the board to engage in discussions with the shareholders directly, without management or advisors.

Overall, being one of the top companies in the application software industry, Msci Inc (NYSE:MSCI) has not been overlooked by major investors. In fact, among the funds that we track at Insider Monkey, 16 disclosed long positions in the company in the last round of 13F filings, while the aggregate value of their stakes amounts to $768.4 million. Aside from ValueAct, another large investor in MSCI is David Blood and Al Gore’s Generation Investment Management, which held 9.85 million shares as of the end of September 2014.

Msci Inc (NYSE:MSCI) has not yet issued a response to ValueAct’s letter, but we should keep an eye on this story as its develops.

Disclosure: none