Former Primedia CEO William Kirsh wants a board shakeup at Cognition, this is why…

Former Primedia CEO William Kirsh is leading a charge for change at investment holding company Cognition. Kirsh, who is also the CEO of Tritech Media, has expressed dissatisfaction with the company's performance and strategic direction, leading him to call for a board shakeup. In a recent interview with CNBC Africa, Kirsh shared his concerns and his proposed solutions for the company's current challenges. Kirsh's involvement with Cognition dates back to a failed merger attempt in 2013 between his company, previously Value Plus Network, and Cognition, then known as Phone Works. While the merger did not materialize, Kirsh and his father ended up holding shares in Cognition as a result. Kirsh acknowledged that while the failed merger was ultimately beneficial for his company's growth, he does not want to come across as solely motivated by personal gain in his advocacy for change at Cognition. One of Kirsh's main grievances with Cognition is the company's lackluster performance in delivering shareholder value. He highlighted the underwhelming stock performance of Cognition, which was listed at 50 cents in 1999 and only recently traded at 95 cents, a return that Kirsh deemed insufficient. Kirsh emphasized that his stance is not isolated, pointing to a group of shareholders collectively holding 12% of the company's shares who have called for an Extraordinary General Meeting (EGM) to address their concerns. Central to Kirsh's proposed reforms is the addition of three new directors to Cognition's board. Kirsh believes that these new directors, chosen for their strong track records and potential to add value to the board, will bring a fresh perspective and help steer the company in a more promising direction. While some may question why Kirsh is not advocating for a leadership change at the executive level, he defended his approach as diplomatic and aimed at achieving better board balance rather than instigating widespread disruption. In response to queries about his contingency plans if the proposed changes are not implemented, Kirsh remained tight-lipped, likening his strategy to that of former US President Donald Trump, known for keeping his cards close to his chest. Kirsh also addressed the lack of institutional interest in Cognition due to its relatively small size and what he described as an uninspiring strategy, factors that have contributed to the company's struggle to attract larger investors. As the EGM approaches, Kirsh's push for a board shakeup at Cognition reflects a shareholder's call for accountability and a renewed focus on driving the company's performance. Whether Kirsh's proposed changes will be embraced by the broader shareholder base and lead to a turnaround for Cognition remains to be seen, but his advocacy signals a proactive step towards addressing the company's current challenges.