Key Summary: On November 3, 2022, Daniel S. Och (0.6%) criticized the CEO's $145.8 million compensation and governance failures, urging the Board to explore strategic alternatives. On January 27, 2023, he raised concerns about the Special Committee's handling of the strategic process. On August 16 and 22, 2023, Och opposed the Rithm Capital acquisition, citing undervaluation and management influence, and criticized the proxy statement as biased. On August 29, 2023, he called for transparency and threatened legal action if shareholder interests are not prioritized.Market Cap: $676 million | Sculptor Capital Management, Inc. is a publicly owned hedge fund sponsor. The firm provides investment advisory services to its clients.
On November 3, 2022, Daniel S. Och (0.6%) sent a letter to the Board that along with the other founding partners of the company , he brought a books-and-records action related to governance failures that resulted in an exorbitant compensation package to the Company’s CEO, totaling $145.8 million in 2021 alone, despite sustained poor performance. He urges the Board to publicly announce that it will pursue a broad range of strategic alternatives
On January 27, 2023, Daniel S. Och (0.85%) stated that he has corresponded with the Special Committee of the Board regarding potential concerns about whether the strategic process is being run in the best interest of all stockholders. Those concerns include: (1) the Special Committee may be discouraging potential bidders from making bids for distinct parts of the Company’s business, including the profitable CLO business, even though analysts have noted the Company is worth less than the sum of its parts; (2) the Special Committee may not be encouraging potential bidders to consider alternative solutions to Mr. Levin’s compensation package, effectively precluding potential bidders from preparing offers that would maximize value to all stockholders; and (3) the messaging of the process may be implying to potential buyers that management’s approval is effectively necessary for any deal. Source
On August 16, 2023, Daniel S. Och (0.82%) sent a letter to the Board expressing with the Rithm Capital Corp. acquisition, citing undervaluation and alleged Board breaches. He criticizes the sale process, suspecting exclusion of potential bidders, and raise concerns about management's influence on the deal. He stated his intention to oppose the transaction unless significant improvements are made.
On August 22, 2023, Daniel S. Och (0.82%) penned a letter to the Special Committee of the board, criticizing the company's preliminary proxy statement. He deems it misleading and biased toward management rather than shareholders. The letter highlights dismissed higher bids due to management's compensation concerns and questions the CEO's exit terms for potential company instability. Och requests transparency, equitable bid consideration, and bidder discussions. The letter concludes with his opposition to the Rithm transaction unless shareholder interests are prioritized.
On August 29, 2023, Daniel S. Och sent a letter to the Special Committee of the Board questioning the decision to prevent open communication with other bidders and highlights the need for transparency to achieve maximum value for shareholders. The letter concludes by stating that if the Committee does not act in the best interests of shareholders, legal action may be considered.
Commentaires