Proxy advisory firm Glass Lewis has thrown its support behind all three director nominees proposed by activist hedge fund Barington Capital in its campaign to shake up the board at Matthews International, according to a report by Reuters.
Glass Lewis cited the need for “positive changes” at the coffin and memorial products company, which has faced extended periods of underperformance.
The reports cites Glass Lewis as saying in a report released Sunday and seen by Reuters, that Matthews’s 11-member board requires fresh perspectives to address its “protracted underperformance.” The company’s stock has declined 24% over the past five years, closing at $26.55 on Friday.
Barington Capital, which owns nearly 2% of Matthews’s shares, has nominated three candidates, including its founder James Mitarotonda, to the board. Glass Lewis praised the proposed nominees, describing them as “a reasonable, credible, and incremental slate of candidates” who could offer a more effective roadmap than the current board.
The activist hedge fund has called for a new strategy to improve Matthews’ financial performance, including a search for a replacement for longtime CEO Joseph Bartolacci and potential divestments of underperforming assets.
Glass Lewis’s endorsement follows similar recommendations from two other proxy advisory firms, which guide institutional investors on voting decisions in corporate elections.
Matthews, though, has found some support among shareholders, with GAMCO Asset Management, which owns 4.39% of the company, announcing last month that it would back the company’s nominees for now, while also warning it might propose governance changes next year if progress isn’t made.
