Board change needed at Parkland, but not as drastic as dissident wants: advisory firm
A prominent shareholder advisory firm says it agrees with activist investor Simpson Oil that board change is needed at fuel retailer and refiner Parkland Corp., but is stopping short of calling for a complete overhaul.
Glass Lewis recommends in a report that shareholders vote for seven of the nine Simpson director nominees and for six of the 13 put forward by Parkland's management.
The advisory firm says there's been a pattern of defensive and reactive decision-making on Parkland's part, including only agreeing to a strategic review after intense shareholder pressure, and that Parkland has underperformed its peers.
But Glass Lewis says a wholesale replacement of the board isn't warranted or advisable and the company benefits from experienced and qualified management board nominees.
Cayman Islands-based Simpson, with a 20% in Parkland, has raised concerns about the company's governance and performance.
In mid-April, Parkland Corp. announced that Bob Espey told the company’s Board of Directors Espey was stepping down from his role as president and chief executive officer.
“On behalf of the Board, I would like to thank Bob for his vision and leadership over the last fifteen years as president and CEO,” said Michael Jennings, executive chair of Parkland said upon the announcement. “Bob has led Parkland through a period of exponential growth, transforming the Company from a small regional fuel retailer into one of Canada’s leading fuel and convenience retailers with international operations in twenty-six countries. We thank him for his unwavering commitment and dedication.”
Jennings said that while assuming the role of executive chair he would continue to provide leadership to the board, while remaining focused on the governance and delivery of the strategic review process.
The strategic review aims to identify opportunities to maximize shareholder value by evaluating the current business strategy and optimization opportunities, while also considering alternatives including asset divestments, acquisitions, transformative business combinations and a sale of the Parkland.
Parkland shareholders are to vote in the new board at its annual meeting on May 6.
With additional files from Convenience Store News Canada
