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  "documentTitle": "PowerSchool Holdings, Inc. (PWSC)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-04-17 00:00:00",
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  "notes": "Uses SEC filing excerpts to frame the narrative of a questionable leadership change.",
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      "text": "On August 4, 2023, PowerSchool's Chief Accounting Officer (CAO) provided her resignation notice and departed just one week later. Upon her departure, Eric Shander, the Company's CFO, temporarily took over as the principal accounting officer. In March 2024, the Company announced it had hired Jon Scrimshaw as its new CAO; Jon is a former colleague of Eric Shander from his time at Red Hat. Spruce Point prefers that public company CAO's have a CPA license. The new CAO does not have a CPA whereas the prior one did.",
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      "text": "On March 12, 2024, Jon Scrimshaw was appointed to the position of Chief Accounting Officer of PowerSchool Holdings, Inc. (the \"Company\"). Mr. Scrimshaw's term commences on April 1, 2024. In connection with Mr. Scrimshaw's appointment as Chief Accounting Officer, Mr. Scrimshaw will be paid an annual base compensation of $325,000 and will be eligible for a discretionary bonus based on performance. The estimated target bonus will be 60% of Mr. Scrimshaw's annual base compensation, less deductions and withholdings required or authorized by law. Mr. Scrimshaw is also eligible to receive Restricted Stock Units (\"RSUs\") of the Company in the amount of $2,000,000, subject to review and approval by the Company's Board of Directors. The RSUs will be granted pursuant the Company's 2021 Omnibus Incentive Plan and will vest over a period of four years, with the initial 25% vesting twelve months after the grant date and the remaining 6.25% each quarter thereafter.\n\nPrior to joining the Company, Mr. Scrimshaw, age 44, served as the Chief Financial Officer of Valencell, Inc., a biometric technology company, from April 2021 to March 2024, and the Senior Director of Corporate Finance of Red Hat, Inc., a software company, from October 2018 to April 2021. Mr. Scrimshaw holds a Bachelor of Science degree in Accounting from Elon University (2001).",
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      "text": "Chief Accounting Officer Departure\n\nOn August 4, 2023, Angelina Hendraka provided notice of her resignation from her position as Chief Accounting Officer of the Company effective as of the end of business on August 11, 2023. Mrs. Hendraka is resigning in order to pursue other opportunities and her resignation is not the result of a disagreement with the Company on any matter relating to the Company's operations, financial statements, policies or practices. The Company thanks Mrs. Hendraka for her dedicated service and wishes her well in her future endeavors.\n\nEffective as of Mrs. Hendraka's departure, Eric R. Shander, the Company's President and Chief Financial Officer, will serve as the Company's principal accounting officer.",
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      "text": "Source: PowerSchool 2Q'23 10-Q filed August 8, 2023, March 18, 2024 8-K",
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      "kind": "title",
      "text": "We Have Concerns With The Abrupt Departure of The Company's Chief Accounting Officer",
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