Engine Capital Launches Proxy Battle for Board Seats at Lyft

Published 21 hours agoLYFT

Engine Capital Launches Proxy Battle for Board Seats at Lyft

Activist investor Engine Capital has ramped up its campaign to influence Lyft's board by nominating two candidates, Alan Bazaar and Daniel Silvers, for election. This move marks the start of a proxy battle aimed at reshaping the company's governance and strategy, as detailed by Reuters.

Engine Capital has expressed concerns over Lyft's current board composition, arguing that it is predominantly made up of founders and independent directors lacking significant public market experience. The investor is also challenging Lyft's dual-class share structure, which grants founders more voting power than typical shareholders. Highlighting the company's struggles, Engine Capital points out that Lyft's stock has plummeted 36% in the past year and 55% over five years, lagging significantly behind main competitor Uber, which boasts a market valuation of $155 billion.

In response to Engine Capital's proposals, Lyft has acknowledged engaging with the investor but concluded that the nominees would not bring additional skills to the board. The ride-hailing company remains under pressure to improve its financial performance and address governance issues as these activist calls for change intensify.

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