Board Changes as Harte Hanks Pursues Turnaround

US marketing solutions firm Harte Hanks has announced the resignation of four directors and the appointment of three replacements, continuing a review of its board and governance. The company received a non-compliance warning from the NYSE last August.

Leaving in mid-June are Christopher Harte, Scott Key and Judy Odom; while William F. Farley will depart on the appointment of a replacement. The four replacements are Timothy 'Bant' Breen, Maureen O'Connell and Martin Reidy. The company will also submit a proposal to declassify the Board at its 2018 AGM, and has reached an agreement with a stockholder group representing 11.8% of its outstanding shares, regarding these and other matters.

Breen is the Founder, Chairman and CEO of digital reputation growth solutions specialist Qnary, and worked earlier as Worldwide CEO of Interpublic Group's global search and social media agency Reprise. Before this he held Executive leadership roles at global media agency Initiative, the IPG Media Lab, IPG Mobile Marketing Agency Ansible, and Universal McCann (IPG). O'Connell served as Chief Financial and Administrative Officer for Scholastic Corporation from 2007 until 2017, and has served on the boards of directors of Beazer Homes and Sucampo Pharmaceuticals. Reidy was CEO and President of digital marketing agency Ansira Partners, and earlier worked as CEO and President of Meredith Xcelerated Marketing and in the same roles at Publicis/Digitas/Modem Media/Dialog.

Harte Hanks' troubles surfaced nine months ago when the New York Stock Exchange issued a notification of non-compliance, after its share price dropped below one dollar. Since then it has lost its EVP, COO and CTO Shirish Lal and opted to share his duties among other leaders; and announced 'significant changes to its executive and board compensation' for the current year, including a 35 percent cut in the base salary of CEO Karen Puckett, changes to severance deals and Board compensation. In January it sold a minority stake to IT consultancy and business process services company Wipro, for $9.9m.

Puckett (pictured) welcomed the three new arrivals and their 'proven marketing services and MarTech expertise' to the Board, underlining the firm's 'strategic objective - returning to profitable growth'. She added: 'On behalf of our stockholders and the entire Board, we sincerely thank Chris, Scott, Judy and Bill for their service. The Company and Board have benefitted from their strong experience, and we are grateful for their significant contributions'.

Sarah Harte, a member of the Stockholder Group, said: 'We are pleased to have worked constructively with Harte Hanks to reach this agreement to add new independent directors to the Board which we believe is in the best interest of all stockholders'. Harte Hanks and the Group have entered into a cooperation agreement whereby the latter has agreed to certain standstill and voting commitments - a copy of the agreement will be filed with the SEC.

Web site: www.hartehanks.com .