Former Pfizer Executives Step Back from Starboard Value’s Campaign

Former Pfizer CEO Ian Read and ex-CFO Frank D’Amelio announced on Wednesday evening that they would be withdrawing from Starboard Value’s activist campaign targeting the pharmaceutical giant. This decision comes just days after news of Starboard’s stake in Pfizer emerged.

In a joint statement issued through an investment bank, Read and D’Amelio expressed their full support for Pfizer’s current CEO, Albert Bourla. The two former executives had been in contact with several company directors shortly before news of Starboard’s involvement broke earlier in the week.

Read and D’Amelio conveyed their confidence in Pfizer’s current leadership, stating that they believed the board and management would ultimately deliver value to shareholders. Pfizer’s stock performance has been relatively stagnant for the year, remaining about 50% below its 2021 peak.

The statement was issued via Guggenheim Securities, a long-time advisor to Pfizer on mergers and acquisitions. However, the bank’s representative declined to offer any further comment beyond the official release.

This reversal by Read and D’Amelio occurs as Pfizer’s board contends with Starboard’s activist efforts, just days ahead of a scheduled meeting between Starboard’s CEO Jeff Smith and Pfizer’s Albert Bourla. It is highly unusual for executives to join and then back away from an activist campaign so abruptly.

It remains unclear how this departure will impact Starboard’s strategy moving forward. A representative for Starboard did not respond to requests for comment. Starboard, one of the most prominent activist funds, has reportedly acquired a $1 billion position in Pfizer.

Starboard, led by Jeff Smith, has previously launched activist campaigns at companies such as Autodesk and Salesforce. Although the fund typically targets technology firms, it has also built significant stakes in companies like Starbucks and News Corp this year.

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