- Three weeks after submitting a slate of 3 directors for election at Rovi's (NASDAQ:ROVI -2.5%) May 13 annual meeting, Engaged Capital (0.6% stake) has issued a new letter accusing Rovi's board of having "all the hallmarks of a broken and unaccountable governance structure that has incubated poor decision making and led to the continued destruction of shareholder value."
- To back up its argument, Engaged notes the poor performance of Rovi's shares over the last 5 years, and asserts the board and management "have netted approximately $48 million in cumulative compensation" since the 2011 Sonic Solutions merger. It also notes average board tenure is 10 years, and claims directors lack needed video/software industry experience.
- The letter comes a day after Rovi announced its voice recognition/UI software will be integrated with Dish's mobile apps and Hopper Voice Remote. Q1 results are due on April 30.