Eagle Energy Inc T.EGL.UN

ISS Recommendation clarified

[UncleWhiskers]

Been following along for a while, and thought I would finally chime in.

It appears that ISS recommended replacing one member of the current Board with one of the nominees of the Concerned Shareholders, leaving 3 of the current members.

Specifically, ISS recommended adding Bradley Porter from the Concerned Shareholders, and dropping Bruce Gibson.  

I don't know why they choose Porter to add, or Gibson to drop.

I have not read the ISS report, only the two press releases.

The Concerned Shareholders highlighted the above in their press release:  “ISS recommended voting for Bradley Porter and withholding on Bruce K. Gibson.”   

Unfortunately the current Board of Eagle was quite selective in the quotes it took from ISS, and didn’t present the ISS position very clearly, arguable misrepresenting it.

Eagle said “ISS recommends that shareholders vote using only Eagle’s YELLOW proxy for the majority of Eagle’s current directors and DO NOT VOTE the dissidents’ blue proxy.” (My emphasis)

You can see that “the majority of Eagle’s current directors” technically sets out the ISS position (3 current members and one new member), but is arguably a very misleading way of stating the recommendation.

Current Management seems to have a pattern of hyperbole and misrepresentation in this proxy battle.

Current Management knows the assets best.  But Current Management has also overpaid itself, increased its severance packages, taken on high leverage with high interest rates, not invested its own capital in the company, and generally let costs get out of control.

ISS definitely point all of the above out, but then opt for a conservative solution  of replacing one board member to spur on change.

Not sure which way I will vote.  Either for Blue, or the ISS recommended mixed bag.  But definitely not just straight Yellow.  We need at least one Board member from the Concerned Shareholders.  The Current Board needs to be held to account at some level, at a minimum.

If someone has actually seen the ISS report, please confirm or revise the above.