The embattled CEO of Temenos has stepped down. But that is not enough for an activist shareholder.
The immediate departure of Max Chuard as Temenos CEO falls short of the demands of at least one investor. The Geneva-based company wants to take until the end of the year to present a successor. In the meantime, current Chairman Andreas Andreades takes over as interim CEO.
That leaves one to conclude that 2023 is likely to be characterized by a vacuum rather than the dynamism of a new management team.
British activist Petrus Advisers, which holds a stake of around 3 percent in the banking software maker since October, adopted this view as well. The activist shareholder welcomed Monday's news of Chuard stepping down as CEO with immediate effect combined with Andreades not standing for re-election to the board at the next annual general meeting.
Rebel Reinforcement
Still, the leadership change falls short of Petrus' demands. That Andreades should remain in power until the AGM with the proposed combined role of interim CEO and executive chairman makes no sense to Petrus.
It is calling on the board to significantly limit Andreades' decision-making power and recusing himself in the search for a new CEO, saying he is part of Temenos' past.
The minority shareholder is getting support in the power struggle over Temenos from Zurich-based asset manager Helvetic Trust, which disclosed a stake of less than 1 percent in November.
Examining the Books
Petrus is encouraged by preliminary fourth-quarter results published in conjunction with the departure announcement. Although Temenos said it is not facing negative structural problems, Petrus renewed its call for the company to undergo a fundamental strategic review of its business, strategy, and prospects.
The capital markets day scheduled for February should be postponed until the new leadership is in place, Petrus went on to say.
Too Long in Limbo
Petrus is pushing the realignment pace much more aggressively than the remaining management team, calling for the transition with the interim CEO to be completed within three months. The annual general meeting would have to be brought forward to April, allowing shareholders to vote on proposed changes to the board of directors.
Petrus partner Till Hufnagel recently publicly accused the CEO of lying and called for the departure of the chairman, who failed to retain and attract top talent. In addition, the old management team ignored the interest of private equity investors in the past.
Stock Market Approved
Previous efforts proved futile and Temenos' shares lost about half their value. After today's publication of preliminary results and the reorganization of the top management, the shares gained about 6 percent at the start of today's trading.
