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Virtusa In Need of Board Revamp, New Mountain Says

Investor with 11% stake criticizes IT firm’s governance
Letter to board explains continued drive for new directors

Cables feed into a serial digital interface (SDI) card inside a communications room at an office in London, U.K., on Monday, May 21, 2018. The Department of Culture, Media and Sport will work with the Home Office to publish a white paper later this year setting out legislation, according to a statement, which will also seek to force tech giants to reveal how they target abusive and illegal online material posted by users.Photographer: Jason Alden/Bloomberg

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By Scott Deveau

June 22, 2020 at 12:00 PM UTC

Corrected

June 22, 2020 at 1:02 PM UTC

This article is for subscribers only.

One of the largest investors in Virtusa Corp. says the information-technology company is turning in a lackluster performance that justifies its push for new board members.

New Mountain Vantage Advisers LLC, which holds about an 11% economic stake, sent a letter to Virtusa’s board outlining its concerns about the company’s failure to reach stated goals such as diversifying revenue and improving margins. New Mountain says those shortcomings have been coupled with poor corporate governance and management compensation arrangements that are out of line with peers.