ADP shareholders voted against adding three directors to its board including Bill Ackman, handing a loss to the activist investor after a three-month long campaign, The Wall Street Journal and Bloomberg reported on Tuesday.
The billionaire founder of the hedge fund Pershing Square has engaged in a bitter proxy battle with the HR-software provider, calling for sweeping changes including the replacement of CEO Carlos Rodriguez.
Ackman, whose hedge fund disclosed an 8% stake in the $US49 billion company in August, said the company’s margins were “vastly below” what they could be. He said ADP’s stock price could double in five years without the company needing to change its dividend or capital structure.
ADP shares were down by less than 1% in premarket trading on Tuesday.