Share page with AddThis


Temenos facing shareholder revolt

ShareholdersSwiss fintech Temenos is under fire from activist shareholders calling for the removal of its senior management.

Petrus Advisers, the UK-based asset manager, has written to the enterprise software company’s board of non-executive directors to demand the resignation of its chief executive and chairman.

The letter, the contents of which were first reported by Bloomberg, also calls on the board to begin a strategic review of the company and to consider a potential sale.

In an extraordinary attack, Petrus states that the current CEO Max Chuard is “far out of his depth in a CEO role and should be terminated with immediate effect”.

Chairman Andreas Andreades was also told he should resign. “His role as de facto decision-maker makes it hard for Temenos to attract and retain world-class management talent”, wrote Petrus.

The trouble for Temenos was sparked by a recent Q3 profit warning and abandonment of the firm’s guidance. The company’s share price has also halved since the beginning of the year and has dropped by 72% since its peak in March 2019.

The profit warning was seemingly the last straw for Petrus. “This uninspired and delusional approach of hoping for ‘something’ later, triggered our decision to write to you.”

Petrus holds just a 3% share in the company, however its call for the dismissal of the CEO and chairman has been backed by another minority shareholder, Helvetic Trust.

The Swiss asset manager only acquired its 1% stake some weeks ago but is already looking to increase its holding so it can exert more pressure on Temenos.

Temenos, which acquired fund admin platform Multifonds in 2015 for €235 million, has issued a statement saying that there is an annual strategic review already underway and it will provide an update in due course.

As of yet, no statement has been issued by Temenos’s largest investor, Swiss billionaire Martin Ebner.

© 2022 fundsTech

Most read features

Roundtable: The digital transformation opportunity

The funds industry is looking at adopting new types of technology, from automation to ESG reporting, blockchain and tokenisation. A FundsTech roundtable in March explored how these will revolutionise the sector.

Tokenisation: The incredible potential of tokenisation

Tokenisation offers a new generation of investors access to a wide range of asset classes. But a lack of analysts is one reason why the market may not be ready for the possibilities, finds Nicholas Pratt.

Regulation: Panel calls for simplicity in ESG reporting

The industry accepts the need for more rigour in ESG fund reporting, but the work will be pointless if investors don’t understand the end result. Nicholas Pratt reports.

Cryptocurrencies: Crypto funds face long wait for regulatory approval

While crypto currencies forge onwards, access for investors who prefer to invest through regulated vehicles remains muted. A wait-and-see stance by regulators lies at the centre of this, finds Nicholas Pratt.

Managing the impact of ESG reporting

A rise in ESG reporting requirements is impacting asset managers in every conceivable way. The solution, discovers Nicholas Pratt, is to use all of this newly found data to form a closer relationship with the next generation of investors.

Sponsored Profiles

The importance of trust when building successful client-vendor teams

Petra Roche and Anna Kanior-FlorekFundTech speaks to Metrosoft’s Petra Roche and Anna Kanior-Florek about cross-organisational relationships and why mutual trust...

The digitally connected Global Transfer Agent

Anand Ramachandran, Vice President, Global Head of Solutions, Richard Clarkson, Head of Solutions, Funds and Swapnil Joshi, Senior Strategy Manager from Oracle Financial Services Global...

Data consolidation takes centre stage in asset management M&A

MergersConsolidation between asset management firms is overwhelmingly expected to increase. Operational challenges remain thanks to legacy systems. But in a recent...

Are you being microserved?

As asset managers grapple with new digital technology, FundsTech talks to Calastone’s Adam Belding about the importance of software architecture and the benefits...