CDK Global to add two directors to board

HOFFMAN ESTATES - CDK Global said it will add two independent directors to its board of directors under an agreement with Elliott Management, one of CDK's largest shareholders with an approximately 9.3 percent ownership stake.

Under the terms of the agreement, CDK's board will appoint two independent directors identified by Elliott, and Elliott has agreed to certain "standstill" provisions. The addition of the two directors will expand CDK's Board to 10 members, all of whom will stand for re-election at the 2016 annual meeting of Stockholders.

"With the appointment of Robert Tarkoff to the board in June, and the addition of two additional independent directors, CDK will have added significant expertise to our board," said Leslie Brun, nonexecutive chairman of CDK Global. "We look forward to the new perspectives they will bring as we build on CDK's positive momentum and improved operations."

CDK Chief executive Officer Brian MacDonald added the company is undergoing a capital allocation review.

"We have already significantly accelerated the pace of capital return with our recent commitment to return $1 billion by the end of calendar year 2016 - a year earlier than our prior target," MacDonald said. "At the conclusion of our current capital return program, we will evaluate our capital allocation policy, which will likely result in additional share repurchases, as well as continued dividend distributions." concluded MacDonald.