- Founder Ken Mulvany seeks to overhaul BenevolentAI’s board
- Boardroom revolt follows steep decline in company’s shares
- Mulvany aims to restore investor confidence amid leadership concerns
After witnessing its shares fall by more than 90%, Ken Mulvany, who established BenevolentAI in 2013, desires to return as executive chairman and remove most of the current board.
BenevolentAI, a pharmaceutical developer headquartered in the United Kingdom, is grappling with a boardroom revolt spearheaded by its founder after a decline in its shares since its initial public offering approximately two years ago.
In a letter to the chairman of BenevolentAI, Ken Mulvany, who established the artificial intelligence firm in 2013, requests that the majority of its board of directors be removed and that a new slate be appointed, with Mulvany himself serving as executive chairman.
The action signifies a significant intervention by Mr. Mulvany, which comes over 18 months after he resigned from the board after the company’s listing on the Euronext exchange in Amsterdam.
Through a merger with a special purpose acquisition company founded by Michael and Yoel Zaoui, two of their generation’s most eminent investment bankers, BenevolentAI became publicly traded at a valuation of over £1 billion.
Since then, however, its shares have declined by more than 90 per cent, reducing its market capitalization to less than 100 million Euros.
After a period of subpar performance, Baroness Shields, the erstwhile technology adviser to David Cameron, resigned as its chief executive in the autumn of last year.
Additionally, approximately half of the 360-person workforce was terminated.
In a letter, Mr. Mulvany informed Dr. Francois Nader, chairman of BenevolentAI, that he had “raised grave concerns regarding the organization’s governance, investor relations, cost management, and business development resources.
Mr. Mulvany reaffirmed his confidence in the organization’s prior accomplishments, showcasing the capacity of artificial intelligence to enhance patients’ healthcare.
Appreciating its collaborations with pharmaceutical behemoths AstraZeneca and Merck, he praised the company’s “broad pipeline of drug candidate programmes.”
However, he cautioned that these were being eclipsed by leadership shortcomings that required immediate attention.
According to individuals with knowledge of the situation, Mr Mulvany intended to dismiss the majority of the current board of directors of BenevolentAI, including Dr Nader, and replace them with a new group of directors whose objectives were to “enhance the company’s business development, refine its strategic focus, provide transparent market communication, and restore confidence among our investors and stakeholders.
According to reports, Mr Mulvany supports the newly appointed CEO, Joerg Moeller, who assumed his position earlier this year.
An individual with direct knowledge stated that a succession of leadership vacancies in critical executive positions over the previous twelve months had left him disheartened.
Assuming he maintains his position as the company’s largest shareholder with a stake of over 23%, Mr. Mulvany believes the company’s development potential makes it significantly more valuable as a publicly traded enterprise.
He wrote that he would seek shareholder support at the impending AGM with a distinct vision for the revolutionary capabilities of BenevolentAI.
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“We hold a leadership position in an organization that possesses the capacity to pioneer developments in AI-powered pharmaceutical research and development, which will ultimately transform fundamental aspects of patient care.
We should come together in this pursuit as it is significant for our shareholders, patients, and the future we strive to establish.
BenevolentAI was brought to the public eye after completing multiple funding rounds as a private enterprise.
The now-disgraced fund manager, Neil Woodford, was a significant supporter of the company before its initial public offering.
Regarding Mr Mulvany, a spokesperson declined to comment.
A BenevolentAI spokesperson stated, “As a publicly traded company, we are committed to considering the opinions of all shareholders.”
