Ancora says Edgewater strategic process was 'flawed', files consent solicitation
Ancora Advisors filed a consent solicitation with the SEC earlier this morning. The ultimate effect of the consent solicitation if successful would be to remove four existing members of the board of Edgewater: Paul Flynn, Paul Guzzi, Michael Loeb and Wayne Wilson, and replace them with four highly qualified director nominees: Matthew Carpenter, Frederick DiSanto, Jeffrey Rutherford and Kurtis Wolf, each of whom is fully committed to ensuring that the best interests of stockholders are properly prioritized during this critical period. Ancora firmly believes that urgent and substantial change is needed on the Board. Ancora has serious concerns regarding the way the company has been managed by certain senior executives, specifically Edgewater's CEO, Shirley Singleton, and Chief Technology Officer, David Clancey, and the lack of effective oversight by the board, which has generously compensated Singleton and Clancey at the expense of properly incentivizing the company's key producers. Ancora believes the company's bloated SG&A expenses, declining consultant utilization rates and excessive compensation paid to Singleton and Clancey have negatively impacted the company's stock price. Despite the value erosion that has occurred at the company, the board has failed to hold senior management accountable and has generally failed to effectively oversee the business in a manner that adequately protects stockholder value, as evidenced by the board's recent decision to renew Singleton and Clancey's employment agreements for another year. Further, Ancora believes the board has failed to adequately explore all strategic opportunities to maximize stockholder value during the company's nearly year-long formal review of strategic alternatives, which was terminated on November 14, 2016. Ancora believes that the board failed to adequately vet the opportunity to monetize parts of the company and was a leading factor in the failure of the lengthy strategic review to achieve anything other than a renewed commitment by the board to what we believe is the company's failed existing strategy. Edgewater stockholders deserve an independent board that will truly look out for stockholders' best interests and will ensure management accountability. Ancora urges shareholders to join in seeking to remove four current directors of Edgewater: Paul Flynn, Paul Guzzi, Michael Loeb and Wayne Wilson, and elect Ancora's four highly-qualified nominees: Matthew Carpenter, Frederick DiSanto, Jeffrey Rutherford and Kurtis Wolf, each of whom has the relevant experience necessary to maximize value for Edgewater's shareholders.