On January 20, 2015, Starboard Value LP delivered a letter to the Chairman and Chief Executive Officer, Paul J. Sarvadi, of Insperity, Inc. and its Board of Directors. In the Letter, Starboard Value expressed that the Company is deeply undervalued and that a number of opportunities exist to create significant value for shareholders based on actions within the control of management and the Board. Starboard Value in the Letter outlined a broad plan to improve the Company's performance, detailing action that management should take to improve execution, reduce operating expenses, improve capital allocation, improve corporate governance, and explore all available alternatives to maximize shareholder value.

The Letter further stated that Starboard Value views that the Company can improve its operating margins through a combination of reducing excessive corporate overhead expenses (including selling its two large corporate jets), and more efficiently allocating advertising expenses (including shifting advertising away from expensive television advertising, golf tournaments, and other golf and sports-related marketing). Further, Starboard Value suggested in the Letter that the Company should consider share repurchases and explore a potential sale of the Company to either a financial or strategic buyer. In addition, the Letter detailed several corporate governance policies of the Company that Starboard Value views are in need of improvement, including excessive executive compensation, numerous related-party transactions, the lack of an independent chairman, a staggered Board, and the existence of a poison pill.

Starboard Value stated in the Letter that it looks forward to discussing all of the points outlined in the Letter in more detail with Sarvadi and the Board.