Logitech Founder's Attempt to Oust Chairperson Fails
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Logitech founder fails in attempt to oust chairperson
ZURICH (Reuters) -Logitech International founder Daniel Borel on Wednesday failed in his attempt to oust Chairperson Wendy Becker, having accused her of failing to provide leadership at the maker of computer mice and keyboards. Just under 86% of shareholders voted for the re-election of Becker at the company's annual general meeting in Lausanne, against the wishes of Borel who wanted board member Guy Gecht to replace her. Gecht, who had told the event he would not accept the position of chairperson if elected, meanwhile received support from 14% of shareholders. Borel, one of three people who founded Logitech in 1981 and who still owns a 1.2% stake, said the Swiss-American company had not adjusted rapidly enough to trends like artificial intelligence or the post pandemic environment. He was also concerned about the leadership team of Becker - a former boss of British clothes manufacturer Jack Wills and CEO Hanneke Faber, an ex-Unilever executive, saying they lacked tech experience. Logitech has only recently returned to sales growth after suffering nine quarters of sales declines following the pandemic-driven boom. "After the mad years of Covid, the company has simply been relying on past successes," Borel told shareholders. "It lacks the leadership capable of facing up to the extreme challenges ahead - artificial intelligence in particular," he added. "The duo running Logitech have no experience of tech. It's a dangerous situation." Becker, who has been chairperson since 2019, has said she will step down at the the company AGM next year. Borel told this year's event that such a long transition period "makes no sense in the fast-paced world of technology". (Reporting by John Revill, Editing by Peter Graff and Angus MacSwan)
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Logitech founder fails in attempt to oust chairperson
Gecht, who had told the event he would not accept the position of chairperson if elected, meanwhile received support from 14% of shareholders. Borel, one of three people who founded Logitech in 1981 and who still owns a 1.2% stake, said the Swiss-American company had not adjusted rapidly enough to trends like artificial intelligence or the post pandemic environment. He was also concerned about the leadership team of Becker - a former boss of British clothes manufacturer Jack Wills and CEO Hanneke Faber, an ex-Unilever executive, saying they lacked tech experience. Logitech has only recently returned to sales growth after suffering nine quarters of sales declines following the pandemic-driven boom. "After the mad years of Covid, the company has simply been relying on past successes," Borel told shareholders. "It lacks the leadership capable of facing up to the extreme challenges ahead - artificial intelligence in particular," he added. "The duo running Logitech have no experience of tech. It's a dangerous situation." Becker, who has been chairperson since 2019, has said she will step down at the the company AGM next year. Borel told this year's event that such a long transition period "makes no sense in the fast-paced world of technology". (Reporting by John Revill, Editing by Peter Graff and Angus MacSwan)
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Daniel Borel, Logitech's founder, failed in his bid to remove Wendy Becker as chairperson. The move highlights tensions in the computer peripherals company's leadership.
Background of the Conflict
Logitech International SA, a Swiss-American manufacturer of computer peripherals and software, has been thrust into the spotlight due to an internal power struggle. Daniel Borel, the company's founder, recently attempted to remove Wendy Becker from her position as chairperson, but his efforts were unsuccessful 1.
The Failed Ouster Attempt
Borel, who founded Logitech in 1981 and holds a 1.5% stake in the company, initiated a campaign to replace Becker. However, his proposal was rejected by a significant majority of shareholders at the company's annual general meeting 2. The vote saw 70.6% of shareholders supporting Becker's re-election, effectively securing her position for another year.
Reasons Behind the Conflict
The tension between Borel and the current leadership stems from disagreements over the company's direction and performance. Borel expressed concerns about Logitech's recent financial results and strategic decisions. He argued that the company needed a change in leadership to address these issues and improve its market position 1.
Wendy Becker's Position
Wendy Becker, who has been serving as Logitech's chairperson since 2019, defended her position and the company's strategy. Under her leadership, Logitech has been focusing on adapting to changing market conditions, particularly in the post-pandemic era where demand for computer peripherals has fluctuated 2.
Shareholder Support and Company Performance
Despite Borel's concerns, the majority of shareholders demonstrated their confidence in Becker's leadership. This support comes at a time when Logitech, like many tech companies, faces challenges in the current economic climate. The company recently reported a 22% drop in sales for the 2023 financial year, reflecting the broader industry trends and market pressures 1.
Implications for Logitech's Future
The failed ouster attempt and the strong shareholder support for Becker suggest that Logitech will continue on its current strategic path. However, the public nature of this leadership dispute may prompt the company to address some of the concerns raised by Borel and other stakeholders 2. As Logitech navigates the evolving tech landscape, balancing innovation, market adaptation, and shareholder expectations will be crucial for its future success.
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