Zscaler Shareholders May Demand Sweeping Board Overhaul Amid Strategy Doubts

Simmering anger with Zscaler's lack of clear strategy to increase shareholder value

Zscaler's latest earnings showcased impressive performance with a 32% year-over-year increase in revenue, surpassing Wall Street expectations. This is another strong showing in what has become commonplace for Zscaler. Despite these strong results, shareholder dissatisfaction persists, primarily due to concerns over CEO Jay Chaudhry's strategic decisions and his reluctance to consider acquisition offers. Given our reporting around Broadcom’s PR/ IR efforts, we wonder who’s stirring the pot. This has led a coalition of major investors to lay the ground to propose a significant shake-up, advocating for a board predominantly composed of independent directors.

A draft letter from these investors expresses a clear demand: "We strongly urge the Board to add new independent voices to thoroughly and transparently review all strategic options, instead of dismissing acquisition offers outright as Mr. Chaudhry has done. The current board's lack of independence has facilitated excessive compensati…