Contrarian Corpus
activist letter proxy fight
2022-03-03 · 17 pages

Huntsman Corporation HUN

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

The three reasons

  1. 1

    Huntsman underperformed the S&P 500 by 337% from IPO to Starboard's involvement

  2. 2

    Board failed three Investor Day promises in a row (2014, 2016, 2018) without accountability

  3. 3

    Board is insular with personal/financial ties to CEO Peter Huntsman, including >$750M Huntsman-family donations to a director's employer

Primary demands

  • Elect Starboard's slate of four independent director nominees at the 2022 Annual Meeting
  • Vote the BLUE proxy card
  • Replace incumbent directors with conflicts/personal ties to CEO Peter Huntsman (Beckerle, Ferrari, Egan, Muñoz)
  • Instill accountability and demand operational excellence to close the EBITDA-margin gap to peers

KPIs cited

Total shareholder return vs. S&P 500 since IPO
Huntsman +80% vs. S&P 500 +417% (Feb 2005–Sep 2021), a 337% deficit
Stock price reaction since Starboard's involvement
+45% vs. S&P 500 -1% (Sep 2021–Feb 2022), a 46% premium
2021 Adjusted EBITDA margin
Huntsman 15% vs. Primary Peer average 24% and Performance Peer average 20% – worst among Primary Peers
EBITDA margin gap to peers over time
~500bps deficit at IPO has widened to ~900bps deficit by 2021
2014 Investor Day target
Promised $2.0B Adj. EBITDA, delivered $1,127M (44% below target)
2016 Investor Day target
Promised $1.3B core EBITDA by 2017, missed by 11% even with one-time MDI price spike
2018 Investor Day target
Promised ~$60/share by 2020; stock was $25.14 on target date (~57% below target)
Venator stake under Ferrari oversight
Stake worth >$1B promised; Huntsman ultimately realized only $140M as Venator declined 90%
ISS / Glass Lewis pay-for-performance
ISS shows bottom-quartile performance with top-quartile pay; Glass Lewis 'F' rating two consecutive years
ESG rating trajectory
Huntsman rated 'B', only Primary Peer recently downgraded; Dow at AA, Celanese at A, Eastman at BBB

Pattern membership

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

Notable slides (7)

Notes

DEFAN14A proxy-fight letter to Huntsman stockholders accompanying Starboard's full 'Transforming Huntsman Corporation' deck (referenced but not included). Strong SCQA: situation (long underperformance), complication (board beholden to CEO), question (will it ever change?), answer (vote BLUE for our 4 nominees). Two especially memorable visual devices: (1) the 'Personal Friendships and Loyalties Among Huntsman Board Members' web diagram on p.7, and (2) the 'Fooled Shareholders ONCE / TWICE / THREE TIMES' broken-promises summary on p.13 capped with the 'definition of insanity' line. Uses peer-CEO 2021 earnings quotes (Celanese, Eastman, Dow) as a reverse contradiction – not the target CEO contradicting himself, but peers proving the target's 'best year ever' was just a rising tide. Layout is dense paragraph + chart hybrid (more letter than slide), but charts are institutional-quality.