Glass Lewis Joins ISS in Recommending Gildan Activewear Shareholders Vote “FOR” ALL EIGHT of Browning West’s Director Candidates, Including Former CEO Glenn Chamandy
Both Leading Proxy Advisory Firms Have Recommended Gildan Shareholders Vote “FOR” All Eight of Browning West’s Nominees and WITHHOLD Support for the Board’s Entire 10-Member Slate, Including Chair
Glass Lewis Concludes That the Incumbent Board Made a “Poorly Reasoned Decision to Remove a Sitting CEO With a Favorable Track Record”
Glass Lewis Determines Browning West’s Eight Strong Director Candidates Have “a More Compelling Path Forward for the Company”
Shareholders Are Encouraged to Vote “FOR” Browning West’s Entire Eight-Member Slate on the GOLD Proxy Card and WITHHOLD Support for the Company’s Nominees Ahead of the
Notably, Glass Lewis and ISS both recommended shareholders WITHHOLD support for all 10 of Gildan’s nominees:
“We appreciate the ringing endorsement both leading independent proxy advisory firms have given our entire slate of director candidates. In their reports, both ISS and Glass Lewis rebuke the current Board and determine that it erred in terminating proven value creator
In its report, Glass Lewis made the following comments regarding the incumbent Board’s decisions and Browning West’s highly qualified nominees:1
- “[…] and particularly in light of the overwhelming opposition to the change by several top shareholders, we believe the Dissident has a more compelling path forward for the Company, nominating eight strong candidates.”
- “[…] the purported depth of the prior board's succession process does not, in our view, excuse what appears to have been a poorly reasoned decision to remove a sitting CEO with a favorable track record, particularly in favor of a replacement we, and many long term shareholders, consider offers inferior experience and expertise.”
-
“[…] we do not see sufficient evidence of value destruction at Gildan to have warranted the removal of
Mr. Chamandy by the board inDecember 2023 , which in and of itself illustrates concerns we have with the incumbent board's views on succession planning […]”
- “The resulting need for retention awards to continuing executives in FY2024 also suggests a poorly planned CEO transition.”
- “Placing this contested situation in context, we are struck by the number of large, long-term shareholders that have come out against the incumbent board.”
- “That the previous directors greetedprofoundly negative investor feedback to its decision by botching a strategic review announcement, resigning before investors could hold them accountable and self-selecting their own replacements — purportedly based in large part on their willingness to simply endorse maintenance of a decidedly turbulent and unpopular status quo — is more troubling still.”
- “Compounding this concern, in our view, is the determination by Gildan's briefly tenured chair to swiftly encourage ‘egos and drama-seekers’ — seemingly a proxy for investors who have publicly disagreed with the Company's whirlwind reshuffle — to ‘get away’, a tone and tenor which hardly seems to portend favorable discourse among shareholders who remain concerned with Gildan's current direction.”
- “[…] we are perplexed by the Company's decision to enter into the Coliseum support agreement, particularly given Coliseum's relatively recent accrual of shares in the Company and an unclear vision of the need for the proceeds.”
***
Shareholders are encouraged to vote FOR Browning West’s eight nominees and WITHHOLD on all 10 management nominees only using the GOLD proxy card. In order for your votes to be counted, you must submit your GOLD proxy or voting instruction form before
For more information on how to vote for the entire
***
Disclaimer for Forward-Looking Information
Certain information in this news release may constitute “forward-looking information” within the meaning of applicable securities legislation. Forward-looking statements and information generally can be identified by the use of forward-looking terminology such as “outlook,” “objective,” “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “plans,” “continue,” or similar expressions suggesting future outcomes or events. Forward-looking information in this news release may include, but is not limited to, statements of
Although
Advisors
About
Browning West is an independent investment partnership based in
Browning West seeks to identify and invest in a limited number of high-quality businesses and to hold these investments for multiple years. Backed by a select group of leading foundations, family offices, and university endowments, Browning West’s unique capital base allows it to focus on long-term value creation at its portfolio companies.
______________________ |
1 Permission to quote Glass Lewis was neither sought nor obtained. Emphasis added by Browning West. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240520357813/en/
Browning West
info@browningwest.com
310-984-7600
browningwest@longacresquare.com
Pelican PR
media@rppelican.ca
christine@carsonproxy.com
Source: Browning West, LP