What happened
Beginning the week on an inauspicious note, shares of Plug Power (PLUG -5.35%) headed south when the opening bell rang this morning. Investors who saw the hydrogen stock decline may have speculated that the catalyst for the movement was an analyst's downgrade or downwardly revised price target -- or maybe both. It turns out that neither event was the case; likewise, there's no alarming news that is leading the bears to click the sell button. Instead, it seems that the market was reacting to news regarding additions to the company's board of directors.
As of 11:35 a.m. ET, shares of Plug Power are down 1.6%, having recovered from a slide of 4.1% earlier in the trading session.
So what
Plug Power announced this morning that it is adding two new members, Jean Bua and Kavita Mahtani, to its board of directors. The two new members will both serve on Plug Power's audit committee, where Bua will act as the committee chair.
Image source: Getty Images.
Currently, Bua serves as the chief financial officer, chief accounting officer, executive vice president, and treasurer at NetScout Systems, a provider of business and security analytics. Acting as Chief Financial Officer, Americas for HSBC, Mahtani oversees the firm's M&A plans in the U.S., Canada, Mexico, and South America.
Speaking to the new additions to the board of directors, Plug CEO Andy Marsh said, "Jean and Kavita's counsel and expertise will bring new energy to our board and strengthen Plug's commitment to enhancing our overall operations to better serve our employees, customers, and shareholders."
Now what
Juxtaposed with the drama currently unfurling at Twitter with its board of directors, news of Plug Power's additions to its board may have led investors to assume that similar conflict is rippling through Plug Power's board. However, this seems unlikely. It's more reasonable to conclude that Plug Power is interested in fortifying its corporate governance team after the company experienced accounting errors in March 2021. Consequently, investors should see today's news as a positive -- not a reason to exit their positions.
