Contrarian Corpus
activist full deck proxy fight
2022-02-28 · 238 pages

Huntsman Corporation HUN

N 5 Narrative
V 4 Visual
C 4 Craft
Original source ↗

The three reasons

  1. 1

    Huntsman returned just 80% since its 2005 IPO vs. 642-822% for peers, a ~562% deficit under CEO Peter Huntsman

  2. 2

    Management failed three consecutive Investor Day commitments (2014 EBITDA, 2016 core EBITDA, 2018 $60 share price)

  3. 3

    Family-controlled, unaccountable Board: Peter Huntsman is both CEO and Chairman and sold Venator stake for $140M after promising $1B+

Primary demands

  • Elect Starboard's four independent director nominees (Gallogly, Beach Lin, Schnabel, Smith) to Huntsman's 10-person Board at the 2022 Annual Meeting
  • Replace four incumbent directors Starboard deems not truly independent or conflicted (Beckerle, Ferrari, Egan, Munoz)
  • Install a Board that will hold Peter Huntsman and management accountable for delivering on financial commitments
  • Drive ~600bps of Adjusted EBITDA margin improvement through better commercial execution, corporate resource reallocation, and manufacturing/supply-chain streamlining
  • Improve governance, executive compensation design, and ESG/TCFD disclosure practices
  • Support vote on Starboard's BLUE proxy card

KPIs cited

Total shareholder return since IPO (Feb 2005 - Sep 2021)
Huntsman +80% vs. Primary Peers +822%, Performance Peers +642%, S&P Chemicals +411%, S&P 500 +417% — a ~562% deficit to Performance Peers
TSR since Peter Huntsman became Chairman (Jan 2018 - Sep 2021)
Huntsman (6%) vs. S&P 500 +78%, Primary Peers +43%, Performance Peers +20%
Adjusted EBITDA margin (since IPO average)
Huntsman 11% vs. Primary Peers 16%, Performance Peers 18% — gap has widened to ~600-900bps in recent years
2021 Adjusted EBITDA margin
Huntsman 15% — the worst among Primary Peers (Celanese 30%, Albemarle 26%, Ashland 23%, Dow 21%, Eastman 21%)
2014 Investor Day target vs. actual
Targeted $2.0B Adjusted EBITDA by 2016; actual $1,127M — 44% below target
2016 Investor Day target vs. actual
Targeted $1.3B core Adjusted EBITDA by 2017; actual $1,134M normalized — 11% below target
2018 Investor Day share price target
Committed to ~$60/share by 2020; actual $25.14 at year-end 2020 — 57% below target
Venator stake monetization
Promised 'at least $1 billion' in 2018; ultimately sold for only ~$140M — $860M shortfall
2018-2020 cumulative free cash flow
Targeted $1.7B; actual $1,521M — 11% below target
Adjusted EBITDA valuation multiple (Sep 2021)
Huntsman 5.7x vs. Primary Peers 8.2x, Performance Peers 8.4x — 2.7x deficit
MSCI ESG rating
Huntsman 'B' — worst among Primary Peers and the only one to have been downgraded
Management cash bonus targets vs. Investor Day commitments
Board set internal bonus EBITDA targets consistently below externally communicated Investor Day goals (e.g., 2018 ID $1,284M vs. FY20 bonus target $916M)

Pattern membership

Where this document fits across the library's 12 rhetorical / structural patterns.

Notable slides (12)

Notes

Definitive additional proxy filing (DFAN14A) dated Feb 28, 2022 — full proxy-fight deck ahead of Huntsman's 2022 Annual Meeting. Starboard seeks minority (4 of 10) board representation; BLUE proxy card. Nominees: James L. Gallogly (ex-LyondellBasell CEO), Sandra Beach Lin, Susan C. Schnabel, Jeffrey C. Smith (Starboard Managing Member). Deck runs 238 pages with ~170+ pages of body plus supplemental appendix from p.173. Core narrative is a devastating 'fooled shareholders three times' pattern — Starboard repeatedly returns to 2014/2016/2018 Investor Day failures to undermine management credibility, punctuated by a CEO-quote contradiction on the Venator 'fire sale' (promised $1B+, delivered $140M). Heavy use of peer-gap charts (EBITDA margin, valuation multiple, ESG rating). The operational opportunity slide (p.34) quantifies ~600bps margin uplift but does not provide a formal SOTP or target price. Campaign outcome (May 2022 AGM) ultimately: none of Starboard's nominees elected — management slate prevailed — but recording as 'unknown' per extraction-time guidance.