Autodesk has reached a settlement with activist hedge fund Starboard Value, bringing an end to one of 2024’s most high-profile proxy contests by agreeing to appoint two new independent directors to its board, according to a report by Reuters.

As part of the agreement, Autodesk will add Jeff Epstein, a former CFO and current operating partner at Bessemer Venture Partners, and Christie Simons, a board member at Micron Technology with deep expertise in auditing for tech and telecom firms.

The additions expand Autodesk’s board to 12 members and are intended to strengthen governance as the company pushes forward on its cloud, AI, and platform strategy.

The truce follows Starboard's campaign to place three nominees — including founder Jeff Smith — on the board, citing concerns over underperformance and a lack of accountability. Starboard holds a $500m stake in the design software firm and has previously pushed for management changes and cost controls.

Autodesk had resisted Starboard’s pressure, defending its long-term strategy and highlighting last year’s board refresh as evidence of proactive governance. Still, facing backing from heavyweight investors including T Rowe Price, the company opted to settle rather than prolong a costly and uncertain proxy fight.

While Autodesk shares are down about 10% year-to-date, they remain up 23% over the last 12 months. News of the resolution gave the stock a 1.6% bump in early trading on Thursday, reaching $268.76.