Hedge fund investor Bill Ackman loses battle with ADP

Hedge fund manager Bill Ackman's hostile attempt to secure a foothold with human resources software firm ADP has failed, though he claimed credit for making the company stronger.

ADP said Tuesday that its investors voted to reject the attempt by Pershing Square Capital Management investor Ackman to secure three board seats, including one for himself.

ADP said investors had reelected all 10 of its board members, according to a preliminary count of ballots.

“I would like to thank our shareholders for the vote of confidence in our Board and management team, as well as our talented associates for their hard work and relentless focus over the last several months," ADP CEO Carlos Rodriguez said in a statement.

He added that "this process has sharpened our focus on the importance of insightful, strategic engagement with our investors, which, over the past few months, has given us a greater appreciation of our owners’ perspectives on our business and growth plans."

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Pershing's nominees — Ackman, Veronica Hagen and Paul Unruh — each received less than 25% of shareholder votes.

Ackman acknowledged the defeat but said the effort had succeeded in accomplishing "much of what we set out to do so far," including showing ADP "opportunities for improvement" and highlighting "the risks of management's failure to perform." His firm is a minority investor in ADP.

Ackman left open the possibility of launching a similar campaign in 2018.

"Here’s to hoping that the company delivers and we don’t need to run for election next year," he said in remarks prepared for ADP's annual meeting.

"Nothing could make me happier than seeing Carlos and the Board succeed in meeting and exceeding their commitments. We intend to be a supportive shareholder who is not shy about sharing our ideas with the company. The bottom line is: we will do everything we can to help."

ADP's stock fell 1.3% to $109.86 as of 9:34 a.m.

Follow Paste BN reporter Nathan Bomey on Twitter @NathanBomey.