Insperity Inc. (NSP) said Monday that it will review its
business and spending as part of a pact with Starboard Value LP,
about two months after the activist investor began pushing the
human-resources company to explore a possible sale and cost
reductions.
Under the terms of the agreement, Insperity will create an
independent advisory committee to review the its business and make
recommendations to the board about capital allocation and expenses.
Two Starboard nominees will sit on the committee, which will be
chaired by Starboard managing member Peter Feld.
Additionally, Insperity said it will add Mr. Feld and two other
Starboard nominees to its board. Starboard, in turn, has agreed to
vote for Insperity's slate of directors at its upcoming annual
meeting.
Starboard unveiled a 13.2% stake in Insperity in January,
criticizing the company's underperformance due to what it sees as
poor execution and lax cost management. In a letter to Insperity's
board, Starboard urged the company to hire an investment bank to
explore a sale of the company.
Starboard also pushed the company to cut its corporate overhead
expenses--including two corporate jets Insperity owns--and
advertising expenses, much of which Starboard said it believes goes
to "television advertising, golf tournaments, and other golf and
sports-related marketing."
Insperity said Monday that it is in the process of appraising
its two jets and intends to market the aircraft for sale.
Starboard has gained attention in recent years as one of the
most ardent activists, taking on companies ranging from paper
producers to pasta sellers. It scored a significant victory last
year when it unseated the entire board of Darden Restaurants Inc.
(DRI), the parent of the Olive Garden restaurant chain.
Write to Chelsey Dulaney at chelsey.dulaney@wsj.com
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