Alight appoints Russell Fradin as new board chairman

CHICAGO - Alight Inc. (NYSE:ALIT), a prominent provider of cloud-based human capital and technology-enabled services with a market capitalization of $3.56 billion and annual revenue of $3.36 billion, has announced significant changes to its Board of Directors, effective March 1, 2025. According to InvestingPro data, the company’s stock currently trades at $6.68, and analysts maintain a strong buy consensus, suggesting potential upside from current levels. Russell P. Fradin will take over as Chairman of the Board, succeeding William P. Foley, II, who will remain on the board. Additionally, Robert Schriesheim, Robert Lopes, Jr., and Mike Hayes have been appointed as board members.

The outgoing board members, Erika Meinhardt, Regina Paolillo, and Dan Henson, were acknowledged by Alight’s CEO, Dave Guilmette, for their guidance during the company’s transition to public markets. Guilmette expressed confidence in the new appointments, highlighting their expertise and the value they will bring to Alight’s growth and client services. While the company isn’t currently profitable, InvestingPro analysis indicates that net income is expected to grow this year, with analysts projecting a return to profitability. For deeper insights into Alight’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Foley, the outgoing chairman, reflected on his tenure, noting the company’s milestones, including its public market entry and technology transformation. He praised Fradin as an excellent successor and expressed his intention to remain a significant shareholder.

Fradin, the incoming chairman, brings extensive experience to Alight. He has held leadership roles at SunGard Data Systems, Aon (NYSE:AON) Hewitt, and BISYS Group, Inc., and has been a senior partner at McKinsey & Company. His appointment is part of a collaboration with Starboard Value, LP, Alight’s largest shareholder, to enhance board leadership and oversight.

The new board members bring diverse backgrounds to Alight. Schriesheim has experience in corporate transformations and has served on multiple public boards. Lopes has a strong background in HR outsourcing and staffing services, and Hayes, a former U.S. Navy SEAL, brings leadership experience from his time at VMware (NYSE:VMW) and Cognizant (NASDAQ:CTSH) Technologies.

These board changes fulfill Alight’s obligations under its May 2024 Cooperation Agreement with Starboard. Peter Feld of Starboard expressed optimism for Alight’s potential to improve revenue growth, profitability, and cash flow generation under the new leadership.

Alight’s press release includes forward-looking statements regarding its board transition plans and business impact. The company, which serves over 35 million people and dependents, focuses on unifying the benefits ecosystem and enhancing employee wellbeing and productivity through its Alight Worklife® platform.

Information for this article is based on a press release statement and financial data from InvestingPro. The platform’s Fair Value analysis suggests that Alight is currently undervalued, presenting a potential opportunity for investors. With the stock showing historically low price volatility and management actively buying back shares, investors seeking detailed analysis can access additional ProTips and comprehensive metrics through InvestingPro’s advanced research tools.

In other recent news, Alight, Inc. announced a quarterly cash dividend of $0.04 per share on its Class A Common Stock, with the payout scheduled for March 17, 2025. This financial action reflects Alight’s commitment to providing shareholder value and indicates stable financial health. Meanwhile, JPMorgan maintained a Neutral rating on Alight Solutions, with a price target of $8.00, citing a conservative revenue growth forecast for 2025 due to slower nonrecurring project revenue and new bookings. Despite these adjustments, JPMorgan still expects growth for Alight, aligning with the company’s management commentary.

Additionally, Alight has promoted Allison Bassiouni to Chief Delivery Officer and Deepika Duggirala to Chief Technology Officer, effective January 1, 2025. These leadership changes are part of Alight’s strategy to enhance service delivery and accelerate innovation. In another development, Cannae Holdings (NYSE:CNNE) sold 12 million shares of Alight to meet liquidity needs but emphasized continued confidence in Alight’s long-term prospects. Cannae’s Chairman, William P. Foley, II, stated there are no plans for further sales in the near future. These updates highlight Alight’s ongoing efforts to strengthen its leadership team and financial strategy.

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