Regardless of whether its merger with OfficeMax (NYSE: OMX ) is completed or not, Office Depot's (NYSE: ODP ) major shareholder Starboard Value believes that the board of directors of needs a significant shakeup to be effective.
In a letter filed with the SEC, Starboard's Jeffrey C. Smith said the office supply retailer needs "a new Board that possesses the appropriate skill sets to oversee a turnaround of Office Depot." Starboard, which owns 14.8% of Office Depot's stock, offered up a slate of eight candidates for the board, including former chairman and CEO of Chrysler and Home Depot Robert Nardelli, and the current president and CEO of Republic Airways' Frontier Airlines subsidiary David Siegel.
Considering the current operating performance, Starboard is looking for immediate change in the makeup of the board, which will benefit the melding of the two corporate cultures should the merger be approved.
If the current board doesn't make the changes requested, Starboard says the annual shareholder meeting should be scheduled before the merger is completed, so the shareholders can decide who they want to lead the company.