Contrarian Corpus
activist letter proxy fight
2022-02-10 · 5 pages

Huntsman Corporation HUN

N 4 Narrative
V 3 Visual
C 3 Craft
Original source ↗

The three reasons

  1. 1

    Huntsman has underperformed proxy peers by 575% since its IPO

  2. 2

    Management missed Investor Day EBITDA targets three times in a row (44%, 11%, 30% misses)

  3. 3

    Board overpaid CEO vs peer median every year FY2016-FY2020 despite underperformance

Primary demands

  • Elect Starboard's four independent director nominees (James L. Gallogly, Sandra Beach Lin, Susan C. Schnabel, Jeffrey C. Smith) at the 2022 Annual Meeting
  • Hold management accountable for failed operational execution and long-term stock price underperformance
  • Vote the BLUE proxy card
  • Improve board composition with chemical/industrial operating experience

KPIs cited

Relative stock performance since IPO vs S&P 500
Huntsman underperformed by 298% (Feb 2005 to Jan 2022)
Relative stock performance since IPO vs S&P Chemicals
Huntsman underperformed by 310%
Relative stock performance since IPO vs proxy performance peers
Huntsman underperformed by 575%
2014 Investor Day Adj. EBITDA target vs actual
$2.0B target vs $1.1B actual — 44% miss
2016 Investor Day Adj. EBITDA target vs 2017 actual
$1.3B target vs $1.1B actual — 11% miss
2018 Investor Day Adj. EBITDA target vs 2020 consensus
$1.3B target vs $0.9B consensus — 30% miss
CEO compensation vs proxy peer median FY2016
$14.5M vs $11.7M — 24% above median
CEO compensation vs proxy peer median FY2017
$16.6M vs $12.4M — 34% above median
CEO compensation vs proxy peer median FY2018
$13.0M vs $10.8M — 20% above median
CEO compensation vs proxy peer median FY2019
$16.1M vs $9.3M — 73% above median
CEO compensation vs proxy peer median FY2020
$13.1M vs $12.2M — 8% above median
Starboard ownership stake
approximately 8.6% of common stock; second-largest stockholder

Pattern membership

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

Notable slides (5)

Notes

Short proxy-fight letter (5 pages) accompanying Starboard's definitive proxy materials for the 2022 Huntsman annual meeting. Classic three-part attack structure: (1) stock underperformance vs peers, (2) repeatedly missed Investor Day financial promises, (3) CEO pay well above peer median despite misses. Villain is institutional (the Board) rather than a named executive — Starboard avoids naming CEO Peter Huntsman directly in the letter. 'Failed promises' framing on Investor Day targets functions similarly to CEO-quote-contradiction but uses quantitative targets instead of verbatim quotes. Letter closes with one-paragraph bios of the four BLUE-card nominees, including Starboard CEO Jeffrey C. Smith himself. Clean but text-heavy layout with three signature red/blue Starboard bar charts; not a full deck.