(Reuters) – Zendesk Inc is in talks to settle with activist investor Jana Partners, which could involve Mikkel Svane stepping down as chief executive and some changes to the board, according to a report https://www.wsj.com/articles/zendesk-is-in-settlement-talks-with-activist-investor-jana-11655239833?mod=latest_headlines by the Wall Street Journal on Tuesday.
The activist investor has said the need for change at the software firm was “abundantly clear”, failing which the company should be sold.
Changes could include removal of Carl Bass, the company’s lead independent director as well as chair of the board’s compensation committee, the WSJ report said.
The move to settle comes days after Zendesk said it would continue as an independent public company following a review of its business.
Jana, which has a stake of about 2.5% in Zendesk, has argued that the company needs to be “rehabilitated” after its attempt to buy SurveyMonkey parent Momentive Global.
Last week Jana said it intends to sue Zendesk after it failed to set a date for its 2022 annual meeting.
(Reporting by Leroy Leo in Bengaluru; Editing by Vinay Dwivedi)
