Glass Lewis recommends Aerojet investors back CEO in proxy contest
By Svea Herbst-Bayliss
BOSTON (Reuters) -Glass Lewis on Tuesday backed Aerojet Rocketdyne Holdings Inc CEO’s eight-person board of administrators slate, turning into the second proxy advisory agency to suggest towards the U.S. rocket maker’s government chairman as he seeks management of the board.
Chief Govt Eileen Drake and Warren Lichtenstein, the manager chairman, every proposed eight director candidates to take a seat on the board.
Traders will vote on director candidates on June 30.
Glass Lewis acknowledged Lichtenstein’s lengthy service, however mentioned traders ought to again Drake’s slate as a result of the corporate has carried out nicely and generated worth for traders throughout her tenure. The agency praised Drake for placing collectively an “skilled and well-rounded slate of candidates in brief order.”
Institutional Shareholder Providers on Friday additionally backed Drake’s slate.
The standoff between Drake and Lichtenstein, whose Metal Companions and associates personal greater than 5% of the corporate, escalated because the collapse of a deliberate sale of Aerojet to Lockheed Martin Corp, the corporate’s largest buyer.
“We’re very gratified to have acquired Glass Lewis’ full assist for our unbiased slate. We now have the validation of the 2 main unbiased proxy advisory companies,” Drake mentioned in a press release.
A consultant for Lichtenstein couldn’t be reached for remark.
Lichtenstein argued that operational enhancements and adjustments to capital allocation are wanted to assist push up the share worth and entice new patrons. He desires to carry again Mark Tucker, a former Aerojet chief working officer, as CEO.
Glass Lewis mentioned Lichtenstein’s slate is filled with “nominees personally or professionally proximate to Mr. Lichtenstein, together with CEO-in-waiting Mark Tucker,” which raises considerations that such a board may not “maintain Mr. Lichtenstein to account.”
(Reporting by Svea Herbst-Bayliss; Enhancing by Leslie Adler)
