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  "documentTitle": "Box, Inc. (BOX)",
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  "authorName": "Starboard Value",
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  "presentationDate": "2021-08-06 00:00:00",
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  "notes": "Uses a list-based critique format to highlight specific corporate governance failures regarding equity management.",
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      "text": "Excessive equity issuance directly and adversely impacts common stockholders",
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      "text": "Recent Convertible Financings: Box raised nearly $850 million of capital it does not need, seemingly ignoring the potential dilution common stockholders face from these transactions.",
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      "text": "Burn Rate: Box has an equity burn rate that is well above ISS Benchmark levels.",
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      "text": "Annual Short-Term Incentive Compensation: Box now pays this bonus compensation in fully vested RSUs, rather than following the market standard and its own precedent of paying in cash.",
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      "text": "Preferred Equity Dividend: Despite having significant excess cash on the balance sheet, Box elected to pay the dividend in common stock, further diluting common stockholders.",
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      "text": "Employee Stock Purchase Plan: Box's ESPP is filled with off-market terms that lead to outsized dilution and do not promote an alignment of interests.",
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      "text": "We believe Box's actions indicate that the Company does not truly appreciate the value of equity and instead views it as a \"costless\" way to \"avoid\" expenses that would otherwise be paid in cash.",
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      "text": "Source: Company filings.",
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      "text": "We Are Concerned That Box Treats Equity As If It Has No Cost",
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