A new 'palace coup'? Pfizer’s global CEO may face ouster.

Pfizer CEO Albert Bourla has been under pressure lately. Not only is the company’s performance continuing to decline, but the prominent activist investor Starboard Value has recently set its sights on Pfizer—raising the possibility that Bourla could be forced out. An activist investor is an individual or institutional investor who acquires a significant stake in a publicly traded company, secures board representation, and ultimately drives major internal changes to corporate management and operations. Such investors aim for high returns post-investment, so they typically target companies with poor management and excessive operating costs, then demand swift reforms from the board or executive leadership to reverse deteriorating financial performance. On October 9, foreign media reported that activist investor Starboard Value would intervene at Pfizer and propose strategic changes. According to a recent report by The Wall Street Journal, Starboard Value has acquired approximately $1 billion worth of Pfizer shares. Citing informed sources, the Financial Times reported that next week, Jeff Smith—the fund’s CEO—and Patrick Sullivan—the partner overseeing healthcare investments—will meet with Pfizer CEO Albert Bourla and independent director Shantanu Narayen to discuss their turnaround plan for the company. Pfizer has declined to comment on the matter. Is this a CEO “defense battle”? On October 9, the Financial Times reported that this meeting received backing from Pfizer’s former CEO Ian Read and former CFO Frank D’Amelio. Reportedly, they have already spoken with at least four Pfizer board members about Starboard Value’s proposed reforms. Some Pfizer shareholders are said to support “major changes,” potentially including replacing the current CEO. Yet, in a dramatic late-night reversal—at 10 p.m. Eastern Time on October 9 (10 a.m. Beijing time on October 10)—foreign media reported that management’s stance shifted: Pfizer’s former CEO and former CFO issued a statement declaring their support for the company’s existing leadership—not for activist investor Starboard Value. In a joint statement released late Wednesday night, former CEO Ian Read and former CFO Frank stated: “We have decided not to participate in Starboard Value’s campaign targeting Pfizer.” Although Starboard Value’s precise proposals remain unclear, people familiar with the fund’s thinking told the Financial Times that it believes Pfizer has been poorly managed since the pandemic—especially citing its $70-billion acquisition spree, including the $43-billion purchase of ADC biotech firm Seagen. Indeed, Pfizer has recently faced setbacks stemming from some of these earlier acquisitions: ・ On September 25, Pfizer announced it would withdraw all batches of Oxbryta globally—a drug originally developed to treat sickle cell disease (SCD). It also terminated all related clinical trials and expanded access programs. This decision followed new clinical data raising serious safety concerns—including patient deaths and increased complications. Oxbryta was a cornerstone asset acquired in Pfizer’s $5.4-billion purchase of Global Blood Therapeutics in 2022. ・ On October 8, Pfizer announced termination of development for its second respiratory syncytial virus (RSV) antiviral drug—acquired from ReViral in 2022 for $525 million—due to persistent challenges in clinical development.

A ‘tough’ investor enters with $70 billion—will Pfizer’s global CEO be ‘fired’?

Interestingly, Starboard Value appears resolute in pushing for reform—and has reportedly enlisted Pfizer’s former CEO and former CFO to help steer this pharmaceutical giant back onto solid ground. Starboard contends that under current CEO Albert Bourla, Pfizer’s historically disciplined cost structure and prudent M&A strategy have steadily deteriorated—indeed, even collapsed—and that the massive acquisitions made over the past two years have yielded disappointing returns. According to the Financial Times, some of Pfizer’s current shareholders have heard Starboard Value’s proposal for strategic transformation and now support a “restructuring”—including replacing the current “captain of the ship,” Albert Bourla. Industry dynamics shift rapidly. Three years ago, amid the surge in COVID-19 products, Pfizer reaped hundreds of billions in revenue and cemented its status as the world’s largest pharmaceutical company. Newly appointed CEO Albert Bourla was the toast of Wall Street. Yet everyone knows what Pfizer has endured over the past three years: lukewarm product reception, unmet financial targets, R&D investments failing to yield returns, and repeated setbacks in high-stakes, repositioned R&D bets. Ultimately, Albert Bourla could not escape mounting liabilities—and mounting criticism. This high-profile intervention by activist capital—bolstered by the involvement of Pfizer’s former CEO and CFO—has undoubtedly delivered a wake-up call to the transforming pharmaceutical giant: “It’s time to adjust strategy urgently—or steering this massive vessel will become untenable.” Has the arrival of a ‘tough’ investor marked a turning point for Pfizer? The influence of activist investors on corporate reform is growing steadily. Investment bank Lazard recently published a report showing that, since 2023, hundreds of new activist campaigns have been launched globally—a record high. Among them, hedge fund Starboard Value stands out as one of Wall Street’s most formidable activist investors, boasting an impressive track record since its founding. Founded by Jeff Smith, Starboard Value adopts an assertive investment style: it acquires minority stakes in target companies and exerts strong pressure on management and boards to drive strategic realignment, cost-cutting, mergers and acquisitions, and operational overhauls—all aimed at enhancing efficiency, unlocking value, and delivering superior returns to shareholders. Since its inception in 2011, Starboard Value has achieved notable success across multiple investments and holds significant stakes in several well-known companies—including Darden Restaurants, Yahoo, Monsanto, and Walmart. In 2013, Starboard Value invested in Darden Restaurants—the U.S. full-service restaurant giant—holding less than 10% of shares yet successfully compelling the company to replace several board members. In 2018, Starboard Value made a large-scale investment in Mylan, the U.S. generic drugmaker, successfully driving a strategic transformation that improved market performance. In 2022, Starboard Value invested in software giant Salesforce, prompting the company to lift profitability—and its stock price doubled over two years. Most recently, Starboard Value invested in Starbucks; under pressure from Starboard and others, Starbucks replaced its CEO in August.

Starboard Value CEO Jeff Smith Outlines Strategy for Three New Investments

Oct 20, 2026

Starboard Value CEO Jeff Smith outlined activist strategies for investments in Knife River Corp., Skyworks Solutions, and Solstice Advanced Materials. He emphasized margin improvements for the construction firm and cost reductions for Solstice's refrigerant and nuclear businesses.

bloomberg

2026-10-19

Activist Starboard Prepares to Nominate Directors at Knife River, Sources Say

2026-10-20

Starboard Value CEO Jeff Smith Outlines Strategy for Three New Investments

Starboard Value CEO Jeff Smith Outlines Strategy for Three New Investments

FAQ