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  "docSlug": "798b531685a0",
  "documentTitle": "GCP Applied Technologies (GCP)",
  "authorId": "03_Starboard_Value",
  "authorName": "Starboard Value",
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  "presentationDate": "2020-04-30 00:00:00",
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  "pageNumber": 12,
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  "notes": "Uses a list-based diagnostic framework to highlight failures.",
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      "kind": "callout",
      "text": "GCP's current Board has failed across the spectrum – operations, governance, compensation, and strategy.",
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      "kind": "callout",
      "text": "GCP’s current Board has failed across the spectrum – operations, governance, compensation, and strategy.",
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      "kind": "list",
      "text": "Poor Stock Price Performance: Underperformed its Direct Peers by 84% since spinning off from W.R. Grace.",
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      "kind": "list",
      "text": "Poor Operating Performance: Operating margin at 10.0% is well below its Direct Peers at 13.4%. Operating expense at 27.9% of revenue is well above Direct Peers at 19.3%.",
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      "text": "Substantial Governance and Compensation Concerns: ISS and Glass Lewis have highlighted bottom quartile performance with top quartile pay. Insular Board with significant interconnections and lack of relevant industry experience.",
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      "text": "Failed Restructuring Efforts: GCP has executed four restructuring efforts in three years with poor results. Operating expenses on both an absolute and relative basis have remained stagnant despite incurring significant restructuring-related expenses.",
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      "text": "Repeatedly Missed Expectations: Consistently missed revenue or earnings expectations 15 out of the last 16 quarters. Consistently revised guidance downwards.",
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      "text": "operating margin: 10.0%",
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      "text": "Since its spin from W.R. Grace in 2016, GCP has substantially underperformed shareholders' expectations, its main competitors, the overall market, and its potential.",
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      "kind": "quote",
      "text": "Institutional Shareholder Services Inc. (“ISS”) and Glass, Lewis & Co., LLC (“Glass Lewis”) have previously highlighted that the Board has rewarded bottom quartile performance with top quartile pay.",
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      "kind": "source-note",
      "text": "Source: GCP's and Direct Peers' public filings, Starboard estimates. (1) Operating expense is not reported for the Direct Peers as defined on pg. 8, as a result, we use parent company metrics.",
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      "kind": "title",
      "text": "Change Is Urgently Needed at GCP",
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      "name": "Cost Of Inaction",
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