Insperity Settles With Starboard, Agrees to Business Evaluation

Insperity Inc. (NSP) said Monday that it will review its business and spending as part of a pact with Starboard Value LP, about two months after the activist investor began pushing the human-resources company to explore a possible sale and cost reductions.

Under the terms of the agreement, Insperity will create an independent advisory committee to review the its business and make recommendations to the board about capital allocation and expenses. Two Starboard nominees will sit on the committee, which will be chaired by Starboard managing member Peter Feld.

Additionally, Insperity said it will add Mr. Feld and two other Starboard nominees to its board. Starboard, in turn, has agreed to vote for Insperity's slate of directors at its upcoming annual meeting.

Starboard unveiled a 13.2% stake in Insperity in January, criticizing the company's underperformance due to what it sees as poor execution and lax cost management. In a letter to Insperity's board, Starboard urged the company to hire an investment bank to explore a sale of the company.

Starboard also pushed the company to cut its corporate overhead expenses--including two corporate jets Insperity owns--and advertising expenses, much of which Starboard said it believes goes to "television advertising, golf tournaments, and other golf and sports-related marketing."

Insperity said Monday that it is in the process of appraising its two jets and intends to market the aircraft for sale.

Starboard has gained attention in recent years as one of the most ardent activists, taking on companies ranging from paper producers to pasta sellers. It scored a significant victory last year when it unseated the entire board of Darden Restaurants Inc. (DRI), the parent of the Olive Garden restaurant chain.

Write to Chelsey Dulaney at [e-mail]

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