On a down day for the market, shares of fintech company Block (SQ -0.06%) performed worse than many other stocks. They closed the day 1.6% lower, in contrast to the essentially flat performance of the S&P 500 index, on news of a pair of departures from the boardroom.
Before market open, Block announced that two members of its board of directors will not stand for reelection at the company's upcoming annual general meeting (AGM). The pair are David Viniar, a former chief financial officer and executive vice president of investment bank Goldman Sachs, and Anna Patterson, who founded and serves as managing partner at Alphabet unit Gradient Ventures.
According to Block, the two individuals and the fintech are parting on good terms.
The announcement said, "Their decision to not stand for reelection was a result of wanting to devote more time to other professional and personal activities and was not a result of any disagreements with the Company on any matter relating to the Company's operations, policies or practices."
In the case of Viniar, his decision was partly due to concerns about "competitive overlap with other boards." The company was not more specific.
Block's AGM is scheduled for June 14. The company said Viniar and Patterson would continue to serve until that date, which not coincidentally represents the end of their terms. Block does not plan to replace either of them, a decision that will reduce the board to 11 individuals from the current 13.
There doesn't seem to be much scuttlebutt about the departures, so we can probably believe the company's assertion that the partings are friendly. Investors probably shouldn't be concerned.