Hedge fund JAT Capital wants to see a change of Chief Executive Officer at internet retailer Overstock.com as it blames incumbent Jonathan E Johnson III for the company’s poor performance, according to a report by Reuters.
JAT, which is run by John Thaler, is not traditionally regarded as an activist investor. But with a 9.6% stake in Overstock.com, the hedge fund is stepping up pressure for change, having called on the company last month to consider selling certain assets and overhaul its management compensation.
The report cites a recent regulatory filing as revealing that JAT wrote a letter to the board earlier this month saying that: “The current CEO needs to be removed immediately. He has performed poorly (as demonstrated by the company’s financials relative to its peer group), he has communicated poorly with investors and the sell-side community and he has recently taken actions that give the appearance that his own interests are being prioritised.”
