Privacy technology company OneTrust announced a series of changes to its board of directors and governance structure Wednesday, which it says positions the company for future growth.
Under the revised governance arrangement, CEO Kabir Barday, CIPP/E, CIPP/US, CIPM, CIPT, FIP, will be joined by Coatue Management's Thomas Laffont and Insight Partners' Richard Wells. Current board members Alan Dabbiere, David Dabbiere and John Marshall will depart from the board, which now seeks "four new independent board members resulting in a majority-independent board of seven people," according to the company's press release.
"Today, we have a clear path forward, strong investor demand, and the capital to support this last phase as a private company," Barday said in comments provided to The Privacy Advisor.
When asked if the company plans to go public, Barday told The Privacy Advisor the company's "strengthened management team with extensive experience, our financial performance at scale, and revamped independent governance structure all help us take major steps forward to make sure we continue to have great options in both the public and private markets ahead."
The move comes after a series of challenges the company faced in a volatile economy for the technology sector and pending litigation within the board of directors. With Wednesday's announcement, all litigation between Barday and board member and investor Alan Dabbiere has been dismissed.
Last month, Barday was sued by Dabbiere in Delaware's Court of Chancery. In the case, Dabbiere alleged Barday made decisions without informing the company's board.
In June 2022, OneTrust announced it was cutting one-quarter of its workforce — approximately 950 jobs worldwide — as concerns about an impending recession and slowing venture capital investment loomed. At the time, Barday said, "It is one of the most difficult decisions I've had to make as a leader." The move came after a shift in capital markets, according to Barday, who noted that "the best course of action is to reorganize to position OneTrust for continued long-term success."
OneTrust was not the only tech company facing cutbacks. A number or large tech companies, including Amazon, Google and Meta, all announced job cuts in recent months. Tech companies reportedly cut a total of 154,843 employees in 2022 and nearly 40,000 in early 2023.
On Wednesday, Barday responded to the job cuts, saying, "Last year, we were one of the first companies to react to the market shifts with a reorganization, a careful decision we made to position the company for long-term success and sustainable growth. Now, three quarters later, we are on a trajectory to be free cash flow positive and continue to grow at a rate of more than 40%. We also closed out our fiscal year delivering our strongest quarter in the company's history."
Looking ahead, OneTrust will now seek four additional independent board members.