{ "docId": "019dd923-622b-71dc-a6da-0645e794c2c4", "docSlug": "68046812fd00", "documentTitle": "Corteva, Inc. (CTVA)", "authorId": "03_Starboard_Value", "authorName": "Jeffrey C. Smith", "documentKindSlug": "shareholder-letter", "documentKindLabel": "Shareholder letter", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2021-01-21 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 2, "pageCount": 4, "prevPage": 1, "nextPage": 3, "slideType": "closing_ask", "function": "closing_ask", "density": "overcrowded", "nDataPoints": 0, "notes": "This is the final page of a shareholder letter, including a signature and a transition note to the appendix.", "elementsJson": [ "paragraph" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6da-0645e794c2c4/2", "deckHref": "/decks/019dd923-622b-71dc-a6da-0645e794c2c4", "deckJsonHref": "/decks/019dd923-622b-71dc-a6da-0645e794c2c4.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6da-0645e794c2c4#slide-2", "components": [ { "bbox": null, "kind": "callout", "text": "For that reason, we decided to nominate eight highly-qualified director candidates for election at the 2021 Annual Meeting.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0935-737e-8dc0-504b57582424", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.8, "x": 0.1, "y": 0.07 }, "kind": "paragraph", "text": "condition. Simply stated, if Corteva were looking to hire a new CEO and Jim was proposed as a candidate, based on his track record, we would not interview him. We do not believe the Board would either. As such, the Board’s reluctance to seriously consider leadership change is highly concerning. Corteva and its shareholders deserve better.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1f1b1b8f-7b31-4ff4-902e-9a5f2b0f32ce", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.2, "x": 0.5, "y": 0.95 }, "kind": "paragraph", "text": "Best Regards, Jeffrey C. Smith Managing Member Starboard Value LP", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "25130595-1abd-42a5-b0f2-fd5f0d6e4dd9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.8, "x": 0.1, "y": 0.85 }, "kind": "paragraph", "text": "Our goal is to represent the best interests of all shareholders, and we believe our actions will place the Company on a path to best-in-class operational performance and great shareholder returns. We remain available to discuss this – and other topics – with you, and of course, remain open-minded about reaching a mutually agreeable solution to put Corteva on a better course.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4eb00a72-59f9-4cd2-ad83-525ac7e72c46", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.22, "w": 0.8, "x": 0.1, "y": 0.39 }, "kind": "paragraph", "text": "For that reason, we decided to nominate eight highly-qualified director candidates for election at the 2021 Annual Meeting. We believe shareholders deserve a Board that is unburdened by past loyalties, demands accountability, and if necessary, is unafraid to seek out best-in-class talent capable of maximizing the Company’s incredible potential. Starboard has a long history of driving operational, financial, strategic, and governance changes that benefit employees, customers, and shareholders. We firmly believe that with the right Board and leadership in place, Corteva can be a best-in-class company in its industry and generate significant value for all shareholders.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "53a9329f-bf74-4678-b667-3161534fcc1c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.18, "w": 0.8, "x": 0.1, "y": 0.2 }, "kind": "paragraph", "text": "As you well know, we have not just provided empty criticisms, but rather, reached out to you only after having a potential solution in hand. Through our good work, we have identified an industry expert with a superb track record of success and excellence who is willing and able to lead Corteva immediately. The Board’s refusal to even speak with the individual we have identified is inexplicable, and leads us to believe that the current Board lacks the fortitude required to make difficult decisions that might set Corteva on a path towards the success that shareholders deserve.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ceed3bc1-4eea-4f55-a544-d59d4d376e2b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.22, "w": 0.8, "x": 0.1, "y": 0.62 }, "kind": "paragraph", "text": "We are confident the slate of professionals we have nominated are incredibly well-qualified to serve as directors of Corteva. This group of extremely impressive director candidates has backgrounds spanning operations, finance, private equity, restructuring, risk management, strategic transformation, and public company governance. As a group, they have substantial and highly successful experience in the agricultural, chemical, energy, and broader industrial industries. Collectively, they have decades of experience as CEOs, senior executives, chairmen and directors of well-performing agricultural and industrial companies. For the benefit of other Corteva shareholders, we have included detailed biographies of our nominees as an appendix to this letter.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e3bdf722-2673-424b-8331-89ecee521f5d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.8, "x": 0.1, "y": 1 }, "kind": "title", "text": "BIOGRAPHIES OF THE NOMINEES ARE ON THE FOLLOWING PAGES", "attrs": null, "subkind": "subtitle", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a5b0d6b5-dd38-454a-8539-f04bc8dadeef", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Storytelling: the closing ask", "slug": "closing-ask", "agent": "storyteller", "layer": "slide", "matchId": "786f25dd-0c3c-4e03-98c4-46b527b72d56", "evidence": "This slide makes a final request or recommendation to the audience, which is a common structure for a closing ask.", "confidence": 0.8 } ], "frameworks": [], "arcBeats": [ { "to": 4, "from": 2, "beatId": "a22a3c9f-4454-4c0f-b89c-1be810454490", "arcName": "The Consultant's Gambit", "arcSlug": "consultants-gambit", "beatName": "Solution & Approach", "beatSlug": "consultants-gambit-solution-approach", "evidence": "The letter presents Starboard Value LP's nominees as a solution to the problem.", "position": 2, "confidence": 0.8, "parentBeatName": "Turn", "parentBeatSlug": "turn" } ], "loops": [ { "to": 4, "from": 1, "name": "Golden Circle", "slug": "11-golden-circle", "bestFor": "Visionary leadership, brand positioning, mission statements", "matchId": "93fc8384-6a6b-4ce9-8de2-1b9b1450ab2c", "evidence": "The letter presents the nominees' biographies as evidence of their qualifications.", "position": 0, "objective": "Why Starboard Value LP's nominees are a good fit for the board", "structure": "The Why (Belief) -> The How (Process) -> The What (Result)", "confidence": 0.7, "description": "Invert the typical pitch by starting with why you exist, rather than what you do" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }