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  "documentTitle": "GCP Applied Technologies (GCP)",
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  "authorName": "Starboard Value",
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  "presentationDate": "2020-04-30 00:00:00",
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  "notes": "Includes a CEO quote from 2017 to highlight the gap between management's stated goals and actual performance.",
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      "text": "If you take the SG&A for this year, Mike, we're probably -- we're around 24% to 25% on remainco with all of the costs on the SG&A, okay? We're targeting in '18 to get that number on a run rate basis down to 22% to 23%. - Greg Poling, President & CEO (May 2017)",
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      "text": "We believe the Company is capable of achieving a 23% SG&A expense ratio, in line with peer benchmarks and prior a management targets.",
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      "text": "2019 SG&A Expense as % of Revenue – GCP vs. Direct Peers",
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      "text": "Despite announcing four restructuring plans over the last three years, GCP's SG&A expense ratio not only remains the highest among peers, but is still well above targets that management committed to in 2017.\nWe believe there are opportunities to streamline the managerial organization, improve decision making speed and decrease the cost structure. We also believe there are opportunities to automate customer service to increase productivity and customer experience.\nWe believe the Company is capable of achieving a 23% SG&A expense ratio, in line with peer benchmarks and prior a management targets.",
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      "text": "SG&A expense ratio: 26%",
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      "text": "We believe there is a path to not only streamline SG&A expenses, but also reallocate resources to create a more efficient and effective organization.",
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      "text": "\"If you take the SG&A for this year, Mike, we're probably -- we're around 24% to 25% on remainco with all of the costs on the SG&A, okay? We're targeting in '18 to get that number on a run rate basis down to 22% to 23%.\" — Greg Poling, President & CEO (May 2017)",
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      "text": "Source: GCP's public filings, Starboard estimates based on Direct Peers' historical performance, and analysis from leading consulting firm engaged in the evaluation of GCP's operations and performance. (1) Direct Peers are defined as on pg. 8. However, as SGO and CSL do not report SG&A expense metrics for the Construction Products and Construction Materials divisions, respectively, we show SG&A for all of SGO and CSL instead.",
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