# EDGAR Filing Document

**Accession Number:** 0000078814
**File Stem:** 0000921895-23-000171
**Filing Date:** 2023-1
**Character Count:** 43845
**Document Hash:** 1448bc605139a42aa250f9919be17dbd
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000921895-23-000171.hdr.sgml**: 20230123

**ACCESSION NUMBER**: 0000921895-23-000171

**CONFORMED SUBMISSION TYPE**: DFAN14A

**PUBLIC DOCUMENT COUNT**: 7

**FILED AS OF DATE**: 20230123

**DATE AS OF CHANGE**: 20230123

**SUBJECT COMPANY**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PITNEY BOWES INC /DE/
- **CENTRAL INDEX KEY:** 0000078814
- **STANDARD INDUSTRIAL CLASSIFICATION:** OFFICE MACHINES, NEC [3579]
- **IRS NUMBER:** 060495050
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** DFAN14A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-03579
- **FILM NUMBER:** 23544982

**BUSINESS ADDRESS:**
- **STREET 1:** PITNEY BOWES INC
- **STREET 2:** 3001 SUMMER STREET
- **CITY:** STAMFORD
- **STATE:** CT
- **ZIP:** 06926-0700
- **BUSINESS PHONE:** 203-356-5000

**MAIL ADDRESS:**
- **STREET 1:** 3001 SUMMER STREET
- **CITY:** STAMFORD
- **STATE:** CT
- **ZIP:** 06926-0700
**FILED BY**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** HESTIA CAPITAL PARTNERS LP
- **CENTRAL INDEX KEY:** 0001456565
- **IRS NUMBER:** 264027247
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** DFAN14A

**BUSINESS ADDRESS:**
- **STREET 1:** 175 BRICKYARD RD
- **CITY:** ADAMS TOWNSHIP
- **STATE:** PA
- **ZIP:** 16046
- **BUSINESS PHONE:** 724-687-7842

**MAIL ADDRESS:**
- **STREET 1:** 175 BRICKYARD RD
- **CITY:** ADAMS TOWNSHIP
- **STATE:** PA
- **ZIP:** 16046

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**SCHEDULE 14A**

(Rule 14a-101)

INFORMATION REQUIRED IN PROXY STATEMENT

SCHEDULE 14A INFORMATION

Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934

(Amendment No.)

Filed by the Registrant ☐

Filed by a Party other than the Registrant ☒

Check the appropriate box:

☐ Preliminary Proxy Statement

☐ Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

☐ Definitive Proxy Statement

☐ Definitive Additional Materials

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;☒ Soliciting Material Under § 240.14a-12

---

| |
|:---|
| PITNEY BOWES INC. |
| (Name of Registrant as Specified In Its Charter) |
| HESTIA CAPITAL PARTNERS LP<br> HELIOS I, LP<br> HESTIA CAPITAL PARTNERS GP, LLC<br> HESTIA CAPITAL MANAGEMENT, LLC<br> KURTIS J. WOLF<br> MILENA ALBERTI-PEREZ<br> TODD A. EVERETT<br> CARL J. GRASSI<br> KATIE A. MAY<br> KENNETH T. MCBRIDE<br> LANCE E. ROSENZWEIG |
| (Name of Persons(s) Filing Proxy Statement, if other than the Registrant) |

---

Payment of Filing Fee (Check all boxes that apply):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;☒ No fee required

☐ Fee paid previously with preliminary materials

☐ Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11

Hestia Capital Partners, LP ("Hestia Capital"), together with the other participants named herein (collectively, "Hestia"), intends to file a preliminary proxy statement and accompanying WHITE universal proxy card with the Securities and Exchange Commission to be used to solicit votes for the election of its slate of highly-qualified director nominees at the 2023 annual meeting of stockholders of Pitney Bowes Inc., a Delaware corporation (the "Company").

Item 1: On January 23, 2023, Hestia Capital issued the following press release and Investor Presentation titled "Pitney Bowes' Failings During the Roth-Lautenbach Era", a copy of which is attached hereto as Exhibit 1 and is incorporated herein by reference:

Hestia Capital Nominates Seven Highly Qualified, Independent Candidates for Election to Pitney Bowes' Long-Tenured, Underperforming Board of Directors

***Highlights Well-Rounded Slate's Capital Allocation Acumen, Corporate Governance Experience, Relevant Sector Backgrounds, Transaction Expertise and Sorely Needed Ownership Perspectives***

***Reiterates Its View That Stockholders Deserve New Leadership Following Years of Value Destruction Under Chair Michael Roth (26+ Years of Board Service) and CEO Marc Lautenbach (10+ Years of CEO and Board Service)***

 

***Urges the Board to Avoid Initiating a Reactionary Director Refreshment or Employing Entrenchment Maneuvers to Insulate Messrs. Roth and Lautenbach***

 ****

PITTSBURGH--(BUSINESS WIRE)--Hestia Capital Management, LLC (collectively with its affiliates, "Hestia" or "we"), which is the third largest stockholder of Pitney Bowes, Inc. (NYSE: PBI) ("Pitney Bowes" or the "Company") and has a beneficial ownership position of approximately 7.2% of the Company's outstanding shares, today announced that it has nominated seven highly qualified and independent candidates for election to the Company's nine-member Board of Directors (the "Board") at the Company's 2023 Annual Meeting of Stockholders (the "Annual Meeting"). In addition, Hestia released a presentation (<u>downloadable here</u>) that details a sampling of current leadership's failings that have led to significant stockholder value destruction.

Kurt Wolf, Founder and Chief Investment Officer of Hestia, commented:

"Hestia has purposefully recruited a well-rounded slate of director candidates that possesses capital allocation acumen, corporate governance expertise, relevant sector backgrounds, operating and transaction experience and ownership perspectives – all of which are needed at Pitney Bowes. Our slate also has deep knowledge of the Company's balance sheet, business segments, market opportunities and secular headwinds. As a result of their experience and insight, our candidates have already been able to identify steps for turning around the Company and quickly repairing its severely damaged credit rating. We look forward to announcing an interim Chief Executive Officer candidate, issuing a 100-day transition plan and sharing a detailed value creation strategy prior to the upcoming Annual Meeting.

We recognize that seeking a change in control of the Board requires a compelling justification. Unfortunately for stockholders, that justification lies in the fact that the Board has failed to address a decade of dismal returns, driven by misguided strategy, failed execution and missed opportunities. As we detail in our accompanying presentation, the long tenures of Chairman Michael Roth and Chief Executive Officer Marc Lautenbach have been defined by poor capital allocation and acquisitions that we believe Mr. Lautenbach has completely mismanaged. The combination of a poor strategy and failed execution has led to a significant decline in the Company's stock price and a continual decline in its credit ratings. Notably, an investor would have been 6.8x better off had they invested in the S&P 500, rather than in Pitney Bowes during Mr. Lautenbach's tenure. This number increases to a staggering 21.6x during Mr. Roth's tenure. This number ranges from 1.7x to 23x for the other seven directors.<sup>1</sup> This record of failure is all the more egregious considering Pitney Bowes' incredibly attractive competitive position and high value products and services.

------

<sup>1</sup> Total stockholder return calculation includes dividends reinvested and runs through the close of trading on November 18, 2022, which is the last day of trading prior to Hestia filing its Schedule 13D with the U.S. Securities and Exchange Commission.

Looking ahead, Pitney Bowes should not initiate an insular and reactionary Board refresh or employ scorched earth tactics to try to deprive stockholders of their right to vote for new leaders at the Annual Meeting. In addition to our valid concerns about management, we believe stockholders are poorly served by the Board's numerous interlocks to The Interpublic Group of Companies, Inc. (which Mr. Roth led for years), stale composition and insufficient sector expertise. If the Board were to take note that the Company's stock price is up more than 20% since our investment was publicly disclosed and roughly 13% since the day we announced our intent to nominate a majority slate of director candidates, it should realize that stockholders strongly support Hestia's efforts. We intend to do everything in our power to continue advancing stockholders' best interests, regardless of the resources and time required to do so."

 

**<u>THE HESTIA SLATE</u>**

Hestia has nominated seven candidates in order to enable two incumbents to continue to serve for continuity purposes. The Hestia slate includes the below listed individuals.

---

| | | |
|:---|:---|:---|
| **Candidate** | **Key Experience** | **Bio** |
| **Milena Alberti-Perez** | · CFO experience<br> · Board and governance experience<br> · Audit, M&A and capital allocation experience  | Milena Alberti-Perez is an experienced c-level leader, public company director and former financial executive at technology and publishing companies. Prior to serving on the board of directors of Digimarc Corp. (NASDAQ: DMRC), where she is Audit Committee Chair, Milena was most recently the Chief Financial Officer of Getty Images Holdings, Inc. (NYSE: GETY) from January 2021 to January 2022. Previously, Milena was the Chief Financial Officer of technology company MediaMath, Inc. and the global Chief Financial Officer of multinational publisher Penguin Random House LLC, where she also served on the company's Audit Committee. Milena began her career as an investment banking analyst at Morgan Stanley and earned her M.B.A. from the Harvard Business School and her B.A. in Economics from The University of Pennsylvania.<br>|
| **Todd Everett** | · CEO experience<br> · Mailing, shipping and logistics experience <br> · M&A experience | Todd Everett is currently a strategic advisor to technology and ecommerce companies that include Doddle Parcel Services Limited, Verishop, Inc. and Fetch Package, Inc. Prior to holding advisory roles, Todd held positions of increasing responsibilities at Newgistics, Inc. ("Newgistics") from 2005 until 2018. Most recently, he served as Chief Executive Officer and led Newgistics to significant growth and profitability prior to its sale to Pitney Bowes. Todd was a Transportation and Outsourcing Manager at Intel Corporation (NASDAQ: INTC) from 1996 through 2005. He received a B.S. in Transportation and Logistics from Iowa State University.<br>|

---

---

| | | |
|:---|:---|:---|
| **Carl Grassi** | · Board and governance experience<br> · Audit and tax experience<br> · M&A experience | Carl Grassi is an experienced public company director with experience across sectors and industries. He has served as a director of companies such as J. Alexander's Holdings, Inc., which recently sold to SPB Hospitality. Additionally, he is Senior Counsel at business advisory and advocacy law firm McDonald Hopkins, LLC ("McDonald Hopkins"). He was McDonald Hopkins' chairman from 2016 to 2019 after serving as firm president for nine years. Carl earned his J.D. from Cleveland State University College of Law and his B.S.B.A. with a major in Accounting from John Carroll University.<br>|
| **Katie May** | · CEO experience<br> · Board and governance experience<br> · Mailing, shipping and logistics experience  | Katie May was previously the Chief Executive Officer of ecommerce SaaS company ShippingEasy, Inc. ("ShippingEasy") prior to selling the business to Stamps.com, Inc. ("Stamps.com"). She was a director of Stamps.com and involved in its value-maximizing sale to Thoma Bravo. Prior to her success with ShippingEasy, Katie founded Kidspot.com.au, where she led the thriving start-up from 2005-2012 until its sale to News Corp (NASDAQ: NWSA). She has an extensive background in marketing, ecommerce, technology and strategic planning. Katie earned her M.B.A. from The University of Texas at Austin and her B.B.A. in Accounting from The University of Texas at Austin.<br>|
| **Ken McBride** | · CEO experience<br> · Board and governance experience<br> · M&A experience<br> · Mailing, shipping and logistics experience  | Ken McBride was the Chief Executive Officer and Chairman of Stamps.com. During his 20-year tenure as CEO of Stamps.com, the Company grew its revenue and profit at a consistent compounded growth of approximately 25% per year, and it grew its enterprise value from less than $25 million to more than $6.5 billion. He and his team successfully acquired and integrated six domestic and international companies, and they transformed the Company from its origins as a small business mailing solution into a worldwide leader in small, medium and large business ecommerce shipping software. During his last full year as CEO, Stamps.com had a million paying subscribers that collectively purchased and printed postage for 2.7 billion packages costing $20 billion for the shipment of products, representing over $200 billion in gross merchandise value or more than 15% of all U.S. ecommerce gross merchandise that year. Ken earned his M.B.A. from Stanford University and his B.S. and M.S.E.E. and B.S.E.E. in Electrical Engineering from Stanford University.<br>|

---

---

| | | |
|:---|:---|:---|
| **Lance Rosenzweig** | · CEO experience<br> · Board and governance experience<br> · Technology and ecommerce experience | Lance Rosenzweig is an experienced c-level leader, public company director and operating executive of public companies, as well as VC- and PE-backed companies. He has been the Chief Executive Officer of three public companies: Support.com, Inc. (formerly NASDAQ: SPRT), which was one of the best performing stocks in any exchange under his leadership; Startek Inc. (NYSE: SRT), where he grew revenues to $650 million and dramatically enhanced earnings; and PeopleSupport, Inc. (formerly NASDAQ: PSPT), which he co-founded and took public. He has held director and Audit Committee roles at public companies such as Boingo Wireless, Inc. (formerly NASDAQ: WIFI), where he was Chairman of the board of directors, NextGen Healthcare, Inc. (NASDAQ: NXGN) and other B2B and B2C businesses. Lance earned his M.B.A. from Northwestern University and his B.S. in Industrial Engineering from Northwestern University.<br>|
| **Kurt Wolf** | · Sizable stockholder<br> · Board and governance experience<br> · Strategic planning and capital allocation experience | Kurt Wolf is the Managing Member and Chief Investment Officer of Hestia Capital Management LLC, which is a sizable stockholder of Pitney Bowes. Previously, Kurt worked in financial, investing and operating roles, including as a senior analyst at Relational Investors and as co-founding partner at Lemhi Ventures, a healthcare services venture capital incubator. Kurt was also co-founding partner at Definity Health, a leading company in the consumer-driven health space that was purchased by UnitedHealth Group Inc. (NYSE: UNH) in December 2004. Earlier in his career, Kurt was a consultant at Deloitte and The Boston Consulting Group. Kurt earned his M.B.A from the Stanford Graduate School of Business and his B.A. in Economics and Mathematics from Carleton College. |

---

**<u>About Hestia Capital</u>**

Hestia Capital is a long-term focused, deep value investment firm that typically makes long-term investments in a narrow selection of companies facing company-specific, and/or industry, disruptions. Hestia seeks to leverage its General Partner's expertise in competitive strategy, operations and capital markets to identify attractive situations within this universe of disrupted companies. These companies are often misunderstood by the general investing community or suffer from mismanagement, which we reasonably expect to be corrected, and provide the 'price dislocations' which allows Hestia to identify, and invest in, highly attractive risk/reward investment opportunities.

**CERTAIN INFORMATION CONCERNING THE PARTICIPANTS**

Hestia Capital Partners, LP ("Hestia Capital"), together with the other participants named herein (collectively, "Hestia"), intends to file a preliminary proxy statement and accompanying WHITE universal proxy card with the Securities and Exchange Commission ("SEC") to be used to solicit votes for the election of its slate of highly-qualified director nominees at the 2023 annual meeting of stockholders of Pitney Bowes Inc., a Delaware corporation (the "Company").

HESTIA STRONGLY ADVISES ALL STOCKHOLDERS OF THE COMPANY TO READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS WILL BE AVAILABLE AT NO CHARGE ON THE SEC'S WEB SITE AT <u>HTTP://WWW.SEC.GOV</u>. IN ADDITION, THE PARTICIPANTS IN THIS PROXY SOLICITATION WILL PROVIDE COPIES OF THE PROXY STATEMENT WITHOUT CHARGE, WHEN AVAILABLE, UPON REQUEST. REQUESTS FOR COPIES SHOULD BE DIRECTED TO THE PARTICIPANTS' PROXY SOLICITOR.

The participants in the proxy solicitation are anticipated to be Hestia Capital, Helios I, LP ("Helios"), Hestia Capital Partners GP, LLC ("Hestia Partners GP"), Hestia Capital Management, LLC ("Hestia LLC"), Kurtis J. Wolf, Milena Alberti-Perez, Todd A. Everett, Carl J. Grassi, Katie A. May, Kenneth T. McBride and Lance E. Rosenzweig.

As of the date hereof, the participants in the proxy solicitation beneficially own in the aggregate 12,619,771 shares of Common Stock, par value $1.00 per share, of the Company (the "Common Stock"). As of the date hereof, Hestia Capital beneficially owns 3,450,000 shares of Common Stock, including 100 shares held in record name. As of the date hereof, Helios beneficially owns 8,602,000 shares of Common Stock. Hestia Partners GP, as the general partner of each of Hestia Capital and Helios, may be deemed to beneficially own the (i) 3,450,000 shares of Common Stock beneficially owned by Hestia Capital and (ii) 8,602,000 shares of Common Stock beneficially owned by Helios. Hestia LLC, as the investment manager of each of Hestia Capital, Helios and certain separately managed accounts (the "SMAs"), may be deemed to beneficially own the (i) 3,450,000 shares of Common Stock beneficially owned by Hestia Capital, (ii) 8,602,000 shares of Common Stock beneficially owned by Helios and (iii) 523,000 shares of Common Stock held in the SMAs. Mr. Wolf, as the Managing Member of each of Hestia Partners GP and Hestia LLC, may be deemed to beneficially own the (i) 3,450,000 shares of Common Stock beneficially owned by Hestia Capital, (ii) 8,602,000 shares of Common Stock beneficially owned by Helios and (iii) 523,000 shares of Common Stock held in the SMAs. As of the date hereof, Mr. Everett beneficially owns 9,771 shares of Common Stock. As of the date hereof, Mr. Grassi beneficially owns 25,000 shares of Common Stock. As of the date hereof, Mr. Rosenzweig beneficially owns 10,000 shares of Common Stock. As of the date hereof, none of Mmes. Alberti-Perez and May or Mr. McBride beneficially own any shares of Common Stock.

**<u>Contacts</u>**

For Investors:

Saratoga Proxy Consulting LLC<br> John Ferguson / Joe Mills, 212-257-1311<br> <u>jferguson@saratogaproxy.com</u> / <u>jmills@saratogaproxy.com</u>

Item 2: On January 23, 2023, Hestia Capital posted the following materials to www.hestiacapital.com:

![](image_001.jpg)

![](image_002.jpg)

![](image_003.jpg)

![](image_004.jpg)

**CERTAIN INFORMATION CONCERNING THE PARTICIPANTS**

Hestia Capital Partners, LP ("Hestia Capital"), together with the other participants named herein (collectively, "Hestia"), intends to file a preliminary proxy statement and accompanying WHITE universal proxy card with the Securities and Exchange Commission ("SEC") to be used to solicit votes for the election of its slate of highly-qualified director nominees at the 2023 annual meeting of stockholders of Pitney Bowes Inc., a Delaware corporation (the "Company").

HESTIA STRONGLY ADVISES ALL STOCKHOLDERS OF THE COMPANY TO READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS WILL BE AVAILABLE AT NO CHARGE ON THE SEC'S WEB SITE AT <u>HTTP://WWW.SEC.GOV</u>. IN ADDITION, THE PARTICIPANTS IN THIS PROXY SOLICITATION WILL PROVIDE COPIES OF THE PROXY STATEMENT WITHOUT CHARGE, WHEN AVAILABLE, UPON REQUEST. REQUESTS FOR COPIES SHOULD BE DIRECTED TO THE PARTICIPANTS' PROXY SOLICITOR.

The participants in the proxy solicitation are anticipated to be Hestia Capital, Helios I, LP ("Helios"), Hestia Capital Partners GP, LLC ("Hestia Partners GP"), Hestia Capital Management, LLC ("Hestia LLC"), Kurtis J. Wolf, Milena Alberti-Perez, Todd A. Everett, Carl J. Grassi, Katie A. May, Kenneth T. McBride and Lance E. Rosenzweig.

As of the date hereof, the participants in the proxy solicitation beneficially own in the aggregate 12,619,771 shares of Common Stock, par value $1.00 per share, of the Company (the "Common Stock"). As of the date hereof, Hestia Capital beneficially owns 3,450,000 shares of Common Stock, including 100 shares held in record name. As of the date hereof, Helios beneficially owns 8,602,000 shares of Common Stock. Hestia Partners GP, as the general partner of each of Hestia Capital and Helios, may be deemed to beneficially own the (i) 3,450,000 shares of Common Stock beneficially owned by Hestia Capital and (ii) 8,602,000 shares of Common Stock beneficially owned by Helios. Hestia LLC, as the investment manager of each of Hestia Capital, Helios and certain separately managed accounts (the "SMAs"), may be deemed to beneficially own the (i) 3,450,000 shares of Common Stock beneficially owned by Hestia Capital, (ii) 8,602,000 shares of Common Stock beneficially owned by Helios and (iii) 523,000 shares of Common Stock held in the SMAs. Mr. Wolf, as the Managing Member of each of Hestia Partners GP and Hestia LLC, may be deemed to beneficially own the (i) 3,450,000 shares of Common Stock beneficially owned by Hestia Capital, (ii) 8,602,000 shares of Common Stock beneficially owned by Helios and (iii) 523,000 shares of Common Stock held in the SMAs. As of the date hereof, Mr. Everett beneficially owns 9,771 shares of Common Stock. As of the date hereof, Mr. Grassi beneficially owns 25,000 shares of Common Stock. As of the date hereof, Mr. Rosenzweig beneficially owns 10,000 shares of Common Stock. As of the date hereof, none of Mmes. Alberti-Perez and May or Mr. McBride beneficially own any shares of Common Stock.

### Attached PDF Documents

**Attachment 1:** `ex1todfan14a12166003_012323.pdf`

![img-0.jpeg](img-0.jpeg)

# Pitney Bowes’ Failings During the Roth-Lautenbach Era

Prepared By Hestia Capital Management

January 2023

# Disclaimer

The materials contained herein (the 'Materials') represent the opinions of Hestia Capital Partners, LP and the other participants named in the anticipated proxy solicitation (collectively, 'Hestia,' the 'Hestia Group' or 'we') and are based on publicly available information with respect to Pitney Bowes Inc. (the 'Company'). The Hestia Group recognizes that there may be confidential information in the possession of the Company that could lead it or others to disagree with the Hestia Group's conclusions. The Hestia Group reserves the right to change any of its opinions expressed herein at any time as it deems appropriate and disclaims any obligation to notify the market or any other party of any such changes. The Hestia Group disclaims any obligation to update the information or opinions contained herein. Certain financial projections and statements made herein have been derived or obtained from filings made with the Securities and Exchange Commission ('SEC') or other regulatory authorities and from other third party reports. There is no assurance or guarantee with respect to the prices at which any securities of the Company will trade, and such securities may not trade at prices that may be implied herein. The estimates, projections and potential impact of the opportunities identified by the Hestia Group herein are based on assumptions that the Hestia Group believes to be reasonable as of the date of the Materials, but there can be no assurance or guarantee that actual results or performance of the Company will not differ, and such differences may be material. The Materials are provided merely as information and are not intended to be, nor should they be construed as, an offer to sell or a solicitation of an offer to buy any security.

Certain members of the Hestia Group currently beneficially own, and/or have an economic interest in, securities of the Company. It is possible that there will be developments in the future (including changes in price of the Company's securities) that cause one or more members of the Hestia Group from time to time to sell all or a portion of their holdings of the Company in open market transactions or otherwise (including via short sales), buy additional securities (in open market or privately negotiated transactions or otherwise), or trade in options, puts, calls or other derivative instruments relating to some or all of such securities. To the extent that the Hestia Group discloses information about its position or economic interest in the securities of the Company in the Materials, it is subject to change and the Hestia Group expressly disclaims any obligation to update such information.

The Materials contain forward-looking statements. All statements contained herein that are not clearly historical in nature or that necessarily depend on future events are forward-looking, and the words 'anticipate,' 'believe,' 'expect,' 'potential,' 'opportunity,' 'estimate,' 'plan,' 'may,' 'will,' 'projects,' 'targets,' 'forecasts,' 'seeks,' 'could,' and similar expressions are generally intended to identify forward-looking statements. The projected results and statements contained herein that are not historical facts are based on current expectations, speak only as of the date of the Materials and involve risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such projected results and statements. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Hestia Group. Although the Hestia Group believes that the assumptions underlying the projected results or forward-looking statements are reasonable as of the date of the Materials, any of the assumptions could be inaccurate and therefore, there can be no assurance that the projected results or forward-looking statements included herein will prove to be accurate. In light of the significant uncertainties inherent in the projected results and forward-looking statements included herein, the inclusion of such information should not be regarded as a representation as to future results or that the objectives and strategic initiatives expressed or implied by such projected results and forward-looking statements will be achieved. The Hestia Group will not undertake and specifically declines any obligation to disclose the results of any revisions that may be made to any projected results or forward-looking statements herein to reflect events or circumstances after the date of such projected results or statements or to reflect the occurrence of anticipated or unanticipated events.

Unless otherwise indicated herein, the Hestia Group has not sought or obtained consent from any third party to use any statements, photos or information indicated herein as having been obtained or derived from statements made or published by third parties. Any such statements or information should not be viewed as indicating the support of such third party for the views expressed herein. No warranty is made as to the accuracy of data or information obtained or derived from filings made with the SEC by the Company or from any third-party source. All trade names, trademarks, service marks, and logos herein are the property of their respective owners who retain all proprietary rights over their use.

© Hestia 2023 All rights reserved

2

# Value Destruction Under Leadership

HESTIA

Chairman Michael Roth and Chief Executive Officer Marc Lautenbach have presided over negative total stockholder returns (“TSR”) while the S&P 500 has delivered outsized returns.

CEO Lautenbach 10-Year Tenure TSR
vs. S&P 500

![img-1.jpeg](img-1.jpeg)

Chairman Roth 26-Year Tenure TSR
vs. S&P 500

![img-2.jpeg](img-2.jpeg)

$100 invested in Pitney Bowes over Marc’s tenure is worth
$50 today.

If you invested $100 in the S&P over the same period, it
would be worth $341.

$100 invested in Pitney Bowes over Michael’s tenure is
worth $49 today.

If you invested $100 in the S&P over the same period, it
would be worth $1,057.

Source: TSR data was obtained via Bloomberg and includes dividends reinvested. TSR data runs through the close of trading on November 18, 2022, which is the last day of trading prior to Hestia filing its Schedule 13D with the SEC.

© Hestia 2023 All rights reserved

3

# Abysmal Total Stockholder Returns

Over all relevant time horizons, including the Board of Directors' (the 'Board') respective tenures (which average 10+ years), the Company has delivered disastrous returns while market indices have significantly outperformed.

## Pitney Bowes TSR

|  | 1-Year | 3-Year | 5-Year | 10-Year |
| --- | --- | --- | --- | --- |
| Pitney Bowes | -49% | -13% | -52% | -47% |
| S&P 500 | -14% | 33% | 68% | 254% |
| S&P 600 | -14% | 30% | 44% | 219% |
| Russell 2000 | -21% | 21% | 32% | 172% |

## CEO and Director TSR

| Name | Tenure Start | TSR During Tenure | S&P TSR |
| --- | --- | --- | --- |
| Anne Busquet* | 11/9/2007 | -78% | 270% |
| Bob Dutkowsky | 7/9/2018 | -52% | 54% |
| Mary Steele Guilfoile | 7/9/2018 | -52% | 54% |
| Doug Hutcheson* | 7/9/2012 | -57% | 258% |
| Marc Lautenbach* | 12/3/2012 | -50% | 241% |
| Michael Roth* | 12/11/1995 | -51% | 957% |
| Linda Sanford | 9/21/2015 | -75% | 130% |
| David Shedlarz* | 9/1/2001 | -77% | 429% |
| Sheila Stamps | 9/1/2020 | -31% | 16% |

*Denotes a director that is considered 'stale' given they have served on the Board for over 10 years.

Source: TSR data was obtained via Bloomberg and includes dividends reinvested. TSR data runs through the close of trading on November 18, 2022, which is the last day of trading prior to Hestia filing its Schedule 13D with the SEC.

© Hestia 2023 All rights reserved

4

# A Failed, Cash-Burning Strategy

Under Messrs. Roth and Lautenbach, post-2014 strategic decisions and investments have resulted in the burning of $300+ million in capital - meanwhile, the Company’s stock price is down more than 85%.

| Leadership's Decision | Strategic Misstep | Poor Capital Allocation |
| --- | --- | --- |
| Failed to aggressively pursue shipping label acquisitions | ✓ | ✓ |
| $875 million spent on Borderfree and Newgistics acquisitions | ✓ | ✓ |
| Pivoted from disciplined, profitable growth at Newgistics to undisciplined, unprofitable sales-focused growth | ✓ | ✓ |
| Unwillingness to repurchase stock at all-time low or debt at significant discounts |  | ✓ |
| Underinvested in Presort acquisitions | ✓ | ✓ |
| Emphasis on organic growth over maximizing EBIT at Presort | ✓ |  |
| Failure to unlock $200 million in restricted cash at the bank for 10+ years* | ✓ | ✓ |

*Typically earning less that 25bps annually.

Source: Bloomberg, Company filings.

© Hestia 2023 All rights reserved

5

# Poor and Unreliable Forecasting

Under Messrs. Roth and Lautenbach, Pitney Bowes has shown a sustained inability to set reliable guidance and hit targets (instances denoted in red below).

Guidance vs. Actual Results for 2015-2021 ($ in millions)

| Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Revenue Guide |  | 3,542 | 2,922 | 3,035 | 3,244 | 3,173 | 3,590 |
| Revenue Actual | 3,578 | 2,981 | 2,784 | 3,212 | 3,205 | 3,554 | 3,674 |
| Adj Rev Actual | -- | -- | -- | -- | -- | -- | -- |
| FCF Guide |  | 425 | 400 | 350 | 225 | 140 |  |
| FCF Actual | 356 | 337 | 336 | 207 | 131 | 197 | 117 |
| Adj FCF Actual |  | 430 | 384 | 318 | 169 | 279 | 154 |
| EPS Guide |  | 1.80 | 1.70 | 1.40 | 1.05 | 0.60 | 0.30 |
| Adj EPS Actual |  | 1.68 | 1.41 | 1.16 | 0.68 | 0.30 | 0.32 |
| GAAP EPS Actual | 2.03 | 0.49 | 1.30 | 1.28 | 1.10 | (1.05) | (0.01) |

The only instance of the Company meeting and/or beating guidance was in 2021, when Pitney Bowes set what we deem to be a “softball” target of $0.30 EPS (just one-sixth of the guidance from 2016).

Source: Company filings.

© Hestia 2023 All rights reserved

6

# A Battered Credit Rating

HESTIA®

Largely due to poorly executed acquisitions and sustained losses within Global Ecommerce, Pitney Bowes’ credit ratings have steadily deteriorated under Messrs. Roth and Lautenbach.

![img-3.jpeg](img-3.jpeg)

Source: S&P Downgrade Report, 2022

© Hestia 2023 All rights reserved

7

# Impugned Credibility in the Market

![Hestia logo]()

At a Deutsche Bank event late last year, Pitney Bowes said Global Ecommerce should be Free Cash Flow positive in 2023 and hit EBIT margins of 6%-8% in 2026 - however, the market appeared to shrug off the news and the Company’s securities still hovered near 1-year lows (as shown below).

![img-4.jpeg](img-4.jpeg)

![img-5.jpeg](img-5.jpeg)

Source: Hestia; Bloomberg.

© Hestia 2023 All rights reserved

8

# Extremely Poor Governance

We believe an insular, clubby boardroom has resulted in a number of governance missteps that need to be addressed by a reconstituted Board - and urge the Company to avoid any defensive director “refreshments” or entrenchment maneuvers ahead of the 2023 Annual Meeting.

| Governance Lapse | Yes/No | Evidence |
| --- | --- | --- |
| Excessive Director Tenure | ☑ | The Company’s average director tenure is currently 10+ years. |
| Boardroom Interlocks | ☑ | Several directors have interlocks, including three with ties to the Interpublic Group of Companies (which Mr. Roth led for years). |
| Inattentiveness to Investors | ☑ | The Company’s disclosed “Investor Outreach” efforts fail to prioritize stockholder feedback on strategy, capital allocation or performance, in our view. |
| Misaligned CEO Compensation | ☑ | For the trailing three years cited in the 2022 Proxy Statement, Mr. Lautenbach made $17.8 million- as stockholder value declined dramatically. |
| Exorbitant Golden Parachute | ☑ | According to the 2022 Proxy Statement, the Board has given Mr. Lautenbach a nearly $25 million parachute upon a change in control. |
| Poor Supervision of Management | ☑ | Days after Pitney Bowes reported weak results and its stock dropped nearly 20% in February 2022, Mr. Lautenbach was golfing during the work week in California. |

Source: Company filings, including the Company’s 2022 Proxy Statement (the “2022 Proxy Statement”), and public records

© Hestia 2023 All rights reserved

9

# Evidence of Lost Focus

HESTIA®

We believe Mr. Lautenbach and management have been allowed to lose focus and avoid accountability for their ineffectiveness.

| Misguided "Moonshot" Bets | Poor Employee Morale | Weekday Golfing |
| --- | --- | --- |
| Pitney Bowes announced last year it would invest $23 million in a speculative robotics venture. Overlooking the fact that corporations have a terrible track record in VC, management should not be spending stockholder capital on speculative investments when the Company is facing credit downgrades, high cash burn in Global Ecommerce and chronic stock price underperformance. Source: Parcel and Postal Technology International. | Glassdoor's current and former employee sentiment from Pitney Bowes' U.S. employee base reveals the following: Only 57% of employees have a positive business outlook Only 67% of employees approve of Mr. Lautenbach Only 66% of employees would recommend Pitney Bowes as an employer Source: Glassdoor data as of January 19, 2022. | Mr. Lautenbach has been an avid weekday golfer during his 10-year tenure as CEO. As just one recent example, on Tuesday February 1, 2022, Pitney Bowes announced 2021 full-year results that triggered a 22% decline in the Company's stock price over three days. Nevertheless, Mr. Lautenbach was on the course in California as this was taking place. The Company's stock price has not yet recovered. Mr. Lautenbach, GlenArbor 2021 Senior Champion Source: Golf.com and GlenArborClib.com. |

© Hestia 2023 All rights reserved

10

# Unaddressed Stockholder Unrest

HESTIA®

During the second half of 2022, several stockholders made Pitney Bowes aware - privately and publicly - that change was needed atop the Company.

![img-0.jpeg](img-0.jpeg)

~1.5% holder

According to a recent article in Reuters, “[i]n September BWM AG wrote a letter to the board highlighting poor execution in the ecommerce segment, excessive debt, overly high corporate costs and the chief executive officer’s multi-million dollar pay.”

![img-1.jpeg](img-1.jpeg)

~7.2% holder

Following months of attempted private collaboration, Hestia disclosed it “intends to nominate a majority slate of director candidates that includes a highly-qualified proposed interim Chief Executive Officer supported by a talented group of operators and strategists. This degree of change is clearly needed to help set a new value-creation strategy after 10+ years of strategic missteps, poor execution and the significant destruction of stockholder and enterprise value under the current Board.”

![img-2.jpeg](img-2.jpeg)

~1% holder

Late last year, Domo Capital’s founder said “[t]he poor management of global ecommerce is on Marc Lautenbach and the poor allocation of capital is on Michael Roth as the chairman of the board.”

To the best of our knowledge, Pitney Bowes has not substantively addressed any stockholder concern through public or private communication - suggesting a fundamental disregard for major investors, in our view.

Source: Hestia public filings and Reuters.

© Hestia 2023 All rights reserved

11

# Our Solution: The Hestia Slate

We purposefully assembled a seven-member slate with capital allocation acumen, corporate governance expertise, relevant sector backgrounds, transaction experience and ownership perspectives.

| Candidates 1-4 | Key Qualifications | Rationale for Nominating |
| --- | --- | --- |
| [BBOX]0.0450,0.2950,0.1150,0.4450[/BBOX] Milena Alberti-Perez | CFO experience Board and governance experience Audit, M&A and capital allocation experience | Ms. Alberti-Perez is an experienced c-level leader, public company director and financial executive. Milena is currently on the board of Digimarc Corp. (NASDAQ: DMRC), where she is Audit Committee Chair. She has served as CFO of three companies, including Getty Images Holdings, Inc. (NYSE: GETY). Her capital allocation, corporate finance and M&A expertise can help Pitney Bowes finally rationalize bloated costs, improve creditworthiness and enhance historically poor forecasting. |
| [BBOX]0.0450,0.4750,0.1150,0.5750[/BBOX] Todd Everett | CEO experience Mailing, shipping and logistics experience M&A experience | Mr. Everett is the former CEO of Newgistics, which he sold to Pitney Bowes. His institutional knowledge and experience leading that business to profitable growth would make him an invaluable addition to the Board, particularly given current leadership's inability to reverse persistent losses within the unit. Since leaving Pitney Bowes, Mr. Everett has served as an advisor and Board member at several eCommerce and logistics companies. |
| [BBOX]0.0450,0.6150,0.1150,0.7150[/BBOX] Carl Grassi | Board and governance experience Audit and tax expertise Legal background M&A acumen | Mr. Grassi is a veteran public company director and M&A advisor. He is currently Senior Counsel at McDonald Hopkins, LLC. He was recently a director of J. Alexander's Holdings, which sold to SPB Hospitality at a nearly 3x price from when Mr. Grassi joined the Board. His background helping companies enhance governance, evaluate alternatives and navigate turnarounds would be valuable to a refreshed Board working to reinvigorate Pitney Bowes and evaluate all strategic options for Global Ecommerce. |
| [BBOX]0.0450,0.7750,0.1150,0.8750[/BBOX] Katie May | CEO experience Board and governance experience Mailing, shipping and logistics experience | Ms. May was CEO of ecommerce SaaS company ShippingEasy.com prior to selling the business to Stamps.com. She was then a director of Stamps.com and involved in its value-maximizing sale to Thoma Bravo. Her background leading high-growth mailing, shipping and logistics businesses can help a refreshed Board recruit new leaders, set the right KPIs and incentives, and oversee sharper strategic execution that drives enhanced stockholder value. |

© Hestia 2023 All rights reserved

12

# Our Solution: The Hestia Slate (Cont.)

Our slate also has deep knowledge of the Company's balance sheet, business segments, market opportunities and secular headwinds

| Candidates 5-7 | Key Qualifications | Rationale for Nominating |
| --- | --- | --- |
| [BBOX]0.0750,0.350,0.1500,0.465[/BBOX] Ken McBride | CEO experience Board and governance experience M&A experience Mailing, shipping and logistics experience | Mr. McBride is a legend in the shipping industry based on his successful two-decade record as Chief Executive Officer and Chairman of Stamps.com. He grew revenue and profit at a consistent compounded growth rate of approximately 25% per year, and grew enterprise value from less than $25 million to more than $6.5 billion. He and his team successfully acquired and integrated six domestic and international companies, and they transformed the company from its origins as a small business mailing solution into a worldwide leader. His strategic vision, operational acumen and transaction experience could help a refreshed Board set a value-enhancing strategy and oversee long-overdue operational improvements across segments. |
| [BBOX]0.0750,0.570,0.1500,0.685[/BBOX] Lance Rosenzweig | CEO experience Board and governance experience Technology and ecommerce experience | Mr. Rosenzweig is a proven c-level leader and public company director. He has been the Chief Executive Officer of three public companies, including Support.com, which was one of the best performing stocks in any exchange under his leadership, and Startek (NYSE: SRT), where he grew revenues to $650 million and dramatically enhanced earnings. His background in strategic planning, operations, technology and ecommerce make him an ideal addition to the Board, especially when considering Pitney Bowes' long-term value destruction and inability to profitably grow its segments. |
| [BBOX]0.0750,0.755,0.1500,0.870[/BBOX] Kurt Wolf | Sizable stockholder Board and governance experience Strategic planning and capital allocation experience | Mr. Wolf is the Managing Member and Chief Investment Officer of Hestia Capital, the largest active stockholder of Pitney Bowes. He has founded, or co-founded, three successful start-ups, and has over five years of turnaround and strategy experience as a management consultant. He previously served on two Boards in which Hestia was invested, serving as an Audit and a Comp Committee Chair, as well as on the Strategic Planning and Capital Allocation Committee, which led the successful recapitalization of GameStop. His status as a sizable stockholder would also result in important ownership perspectives finally being considered in the boardroom. |

© Hestia 2023 All rights reserved

13

![img-3.jpeg](img-3.jpeg)

# HESTIA®

Hestia Capital Management

175 Brickyard Road, Suite 200
Adams Township, PA 16046

info@hestiacapital.com

(878) 217-4800