(Alliance News) - Allied Minds PLC said Wednesday that Mike Turner is stepping down as co-chief executive officer in March next year, as part of a larger restructuring of the intellectual property commercialisation firm.
Turner will step down on March 10, when Joe Pignato will continue on as sole CEO.
Turner will stay with Allied Minds but focus on the company's restructuring. He will step down from the board.
Pignato said: "Working closely together as co-CEOs, Mike and I have achieved significant progress since the new, focused strategy was launched earlier this year and we have generated substantial value for shareholders during that period. We will soon complete this transitional phase, having transformed and right-sized the business, and are therefore reshaping the management team to further optimise our cost base."
Pignato also has agreed to reduce his annual bonus to 100% of his base salary from 150%. He is now the last employee remaining on the company's since-ended long-term incentive plan. Pignato also has agreed to forfeit his share awards from 2017 and 2018.
Allied Minds said Non-Executive Director Fritz Foley will be stepping down from the board, as well, to be replaced by Mark Lerdal, with immediate effect.
Activist investor Crystal Amber Fund Ltd had been angling for Lerdal's appointment. It owns a 17% stake in Allied Minds.
Lerdal is currently executive chair at Leaf Clean Energy Co.
Crystal Amber has previously decried the leadership of Allied Minds, believing they have not been acting in the best interests of shareholders.
The investor has blamed "excessive" headquarter costs and misaligned incentive arrangements, as well as the fact that Allied Minds has not returned any cash to shareholders since 2014.
As well as seeking the removal of Foley and Turner, Crystal Amber has sought to remove Non-Executive Chair Jeffrey Rohr, who Allied Minds said Wednesday will retire at end of his second three-year term in June 2020.
Due to the changes announced Wednesday, Crystal Amber has agreed to withdraw its notice of requisition.
As part of the restructuring, Allied Minds was hoping to shave a further USD7.5 million off its recurring HQ expenses, but updated that guidance on Wednesday saying the figure will now be "no more" than USD6.0 million.
The cost reduction will begin in 2020, the company said.
On a positive note, however, Allied Minds said it will now return USD40 million to shareholders from the sale of its stake in radio frequency data analytics firm HawkEye 360 - up from the original USD32.8 million planned. The company said the rise was due to increased cost savings.
The shareholder return will be completed by the first quarter of 2020.
Pignato added: "The measures announced today will allow the business to maintain the necessary investment in key areas, in order to further support our portfolio companies on their path towards meaningful commercialisation, ensuring that the company remains on track to deliver attractive returns to all our shareholders in the coming years."
Shares in Allied Minds were 0.8% higher in London on Wednesday at 45.40 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Crystal Amber (CRS)