One of Yelp’s primary investors is demanding a board restructure due to slowing down of the company’s economic growth.
In a statement made public last Monday, investors demanded that they need Yelp to increase the number of board directors together with stakeholder’s representatives.
SQN, one of Yelp’s biggest stakeholders, stated that the directors might have overlooked Yelp’s plans to up stocks. The board’s accountability might have resulted in slow economic growth indicated by losses in the income.
An investor from the Redwood City, located near Yelp San Francisco, mentioned that Yelp needs more initiative to work on problems circulating in the company. These issues lead to reduced modernized performance.
According to SQN, Yelp let several companies such as Google, Facebook, Uber, and AirBnB surpass its performance in competitive areas. Yelp, on the other hand, stated that its board is open for improvements and it is searching for skilled directors to be added to the pool.
Last 2012, Yelp was made public. As smartphone usage reaches peak popularity, Yelp came into the scene. However, the growth slowed down. According to SQN, Yelp did not attempt to modernize with market demands.
SQN stated that a director averages at least nine years with the company and the board has only acquired one new associate since 2012.
Yelp is open to discussion with SQN. It wants to serve its shareholders accordingly.
Yelp’s income in the third quarter fell and is expected to stay low in the final quarter.
Yelp’s CEO Jeremy Stoppleman held the advertising team liable for the income losses, claiming they fail to catch the attention of users.