ISS supports Gildan nominees put forward by activist shareholder Browning West
The Canadian Press
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.
This report by The Canadian Press was first published May 17, 2024.
Gildan investors should back browning and reinstate fired CEO, ISS says
, Bloomberg News
Gildan Activewear Inc. shareholders should vote for all eight board nominees put forward by activist investor Browning West LP, including the chief executive officer who was fired by the board last year, proxy advisory firm Institutional Shareholder Services Inc. said.
It’s a big victory for Browning West, which has a 5 per cent stake in Gildan and has been waging a monthslong campaign to turf the current board and bring back Glenn Chamandy as CEO. He was ousted in December after an internal battle over strategy and succession.
“The dissident has presented a compelling case to reverse the change implemented by the legacy board,” ISS said in a report to clients.
Montreal-based Gildan makes cheap clothing for companies such as Walmart Inc. and owns the American Apparel brand.
Browning’s proposed slate is led by Michael Kneeland, the chair of United Rentals Inc., who would become the new chair of Gildan if the investment firm is successful in the shareholder vote that’s scheduled for May 28.
Two Gildan lawsuits against Browning West dismissed amid leadership battle: investor
The Canadian Press
Browning West LP says two lawsuits launched by Gildan Activewear Inc.'s board against the investor have been dismissed.
The activist investor is among several major Gildan shareholders that have been campaigning to have the clothing maker's former CEO reinstated.
In a statement Thursday, Browning West said the two lawsuits were dismissed by the Superior Court of Quebec and the Quebec Financial Markets Administrative Tribunal.
Gildan announced late last year that longtime CEO Glenn Chamandy was being replaced, and several investors including Browning West are now fighting to have him brought back.
Browning West has nominated eight people including Chamandy for election to the Gildan board of directors at the company's annual meeting on May 28.
Gildan did not immediately respond to a request for comment.
This report by The Canadian Press was first published May 16, 2024.
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