"We believe these two executives, who, in our view, make minimal contributions to driving revenue and client relationships, retained a staggeringly disproportionate share of the Company's operating profits," Ancora said in one filing. The investment firm claims that Edgewater's two operating units Ranzel, its Oracle practice, and Fullscope, a Dynamics reseller, "are run as independent silos with their own dedicated staff (including consultants and sales & marketing staff), with little involvement from Singleton and Clancy. Ancora also said the four incumbent directors have no stake it future since they have purchased only 7,700 shares of stake between them with two owning no Edgewater shares. Edgewater rejects Ancora's allegations and both sides are at odds over facts. Edgewater says Ancor's nominees lack relevant experience and that replacing the two executives would disrupt the company. The sides differ sharply over claims about return on investment.Last modified on Friday, 10 February 2017
INSURGENTS: EDGEWATER EXECS "DEAD WEIGHT" Featured
A shareholder group seeing to replace four shareholders on the board of directors of Edgewater Technology claims two of the company's leaders are "dead weight." In its SEC filings, Ancora Catalyst Funds applied that term to CEO Shirley Singleton and chief technology officer David Clancy.
Bob Scott has been informing and entertaining the mid-market financial software community with his email newsletters for 10 years. And he has been covering this market through print publications for 18 years, first as technology editor of Accounting Today and then as the Editor of Accounting Technology from 1997 through 2009. He has covered the traditional tax and accounting profession during the same time and continues to address that as executive editor of the Progressive Accountant.