RE:La saga continueManagement has a big problem. Glass Lewis also came out in favour of activists.
ISS supports Gildan nominees put forward by activist shareholder Browning West
Institutional Shareholder Services Inc. is throwing its support behind a slate of board nominees and a former chief executive that dissident Gildan Activewear Inc. shareholders have been fighting to see run the company.
ISS, a prominent advisory service, is recommending shareholders vote for eight nominees put forward by Browning West and withhold votes from another slate pitched by the Montreal-based apparel manufacturer's current management.
The Browning West slate includes former Gildan chief executive Glenn Chamandy, while the group put forward by management features current chief executive Vince Tyra.
A report ISS issued to detail their recommendations points out that Gildan's operating performance over the last five years was moderately better than its peers and adds Tyra's past experience fails to establish him as a superior option to Chamandy.
Chamandy was ousted from Gildan last year to make way for Tyra. At the time, the company said it made the swap because Chamandy had no credible long-term strategy for the company and had lost the board's trust and confidence.
A spokesperson for Gildan says the company has no comment on the ISS recommendations.