What activist hedge fund Starboard wants from Pfizer

• Activist hedge money Starboard has taken a liking successful supplier elephantine Pfizer.
• Starboard execs met pinch institution officials past week to outline their complaints.
• See highlights from nan 74-page slideshow Starboard presented to Pfizer astatine nan meeting.

Activist hedge money head Jeff Smith outlined his concerns astir drugmaker Pfizer connected Tuesday but stopped short of offering a solution —  saying that's a occupation for nan committee of directors.

Speaking astatine nan 13D Monitor convention connected activistic investing successful Manhattan, Smith, known for changing companies from wrong by winning committee seats, said Pfizer needed to "amp up nan accountability." He besides shared a type of nan position his hedge money Starboard presented to Pfizer officials astatine a gathering past week.

"It's not often that investors and shareholders are capable to spot what we coming to companies," Smith told nan crowd gathered astatine nan Pierre Hotel overlooking Central Park, adding, "But successful this case, we thought it was important to make judge that we shared it."

The 74-page slideshow, which Smith said was "roughly" nan aforesaid arsenic nan 1 shared pinch nan company, called for improvements to Pfizer's supplier investigation and development, spending connected acquisitions, and forecasting of its financial results. Tying these themes together, Smith said, was a mediocre study paper erstwhile it comes to return connected investments.

Pfizer declined to comment.

"We each get measured by our way record," Smith told nan crowd. "I get measured by my way record. I'm judge astir of you successful nan world get measured by your way record. The way grounds is not awesome during this play of clip successful nan pharma industry."

Smith said Pfizer needs to amended "discipline astir their walk and getting nan due return connected that spend," adding, "But this is simply a achromatic oculus connected their diligence arsenic well. They person immoderate of nan top scientists successful nan world."

He stopped short of providing a solution, saying he wanted to time off that up to nan board.

"I could specify what that is, I'm not going to specify what that is, but they request to do thing different to make judge that they're changing nan measurement they're allocating superior internally successful bid to get nan correct return connected that investment," he told nan crowd.

Smith added: "They can't travel Einstein's meaning of insanity and proceed to do nan aforesaid point complete and complete again and expect a different result."

Smith hasn't yet said whether he wants committee seats astatine Pfizer, but the 52-year-old Starboard cofounder has served connected nan committee of companies his hedge money has targeted before, including pizza concatenation Papa John's and nan proprietor of Olive Garden and Red Lobster.

Here's a peek astatine nan company's position to Pfizer.