By Svea Herbst-Bayliss
(Reuters) – Velodyne Lidar founder and largest shareholder, on Thursday, warned that he will nominate two directors for the board of directors next year. This is in response to frustration at the falling stock price and high executive compensation, as well as the failure of the board to concentrate on new research.
David Hall, in a letter that Reuters saw, wrote to investors that the board had made “strategic errors” and that he plans to replace Michael Dee, chairman, and Christopher Thomas, director, at the 2022 annual meetings.
Hall stated that he would not permit Velodyne Lidar’s stagnation to continue under the current leadership. He also added, “I intend two highly-qualified directors candidates.”
Hall, who left the board after being stripped of his chairmanship in February by the company, now owns 52% of the business along with Marta Hall, his wife and member of the seven-member board.
The date for next year’s annual meeting has yet to be determined and the investors won’t have access until February 2022, when they can officially nominate candidates for director.
The company representative was unavailable for comment immediately.
Hall’s plans and letter mark the latest chapter in the boardroom drama, which began shortly after the company became public in 2020 with the special purpose acquisition company. Anand Gopalan, the chief executive officer of the company, left at the end July. He hasn’t been replaced.
Hall accuses the board in Hall’s letter of accepting performance mediocracy and large salaries, as well as other unegregious compensation practices, instead of creating an actionable plan for preventing value destruction.
In the past 52 weeks, the stock price of this company has fallen 59%. The company is the largest supplier of lidar (an acronym for light detector and ranging). This uses laser beams in order to make a 3D representation the survey environment.
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