ALTA, Wyo., April 24, 2019 /PRNewswire/ --
The Trend is Positive for Shareholders
At the 2016
annual general meeting for Lee Enterprises, Inc. ("LEE") incumbent
directors Mary Junck, Herb Moloney, and Kevin
Mowbray received 97% average approval from shareholders. At
the 2019 meeting held February 20,
approval for these three decreased to an average of 83%, a decline
of 14% on a relative basis. Cannell Capital LLC ("Cannell") would
posit that this is due to its campaign on behalf of all
shareholders to vote "No" to LEE's tired and stale board.
ISS and Glass Lewis Agree with Cannell
Institutional
Shareholder Services and Glass Lewis were both unanimous in their
recommendation that LEE recruit new directors to the Board. This is
what Cannell has been requesting for many months.
As of April 22, 2019, no directors
have arrived. A retained search firm has interviewed the candidates
of Cannell, but it is the opinion of Cannell that LEE is not
interested in (i) owners enjoying greater representation on the
Board; or (ii) upgrading the Board.
Moreover, shareholders should be frustrated that LEE's Corporate
Governance Guidelines are clear that no director should be
nominated to serve a new term if he or she would be at or above age
70 at the time of election. As of today, three of LEE's nine
directors are over 70. Although these guidelines do specify an
expectation for "extraordinary circumstances," shareholders should
ask LEE what are these extraordinary circumstances which cause a
full one third of the Board to violate its own guidelines. Are
there really any extraordinary circumstances?
Cannell has received robust interest as to LEE from angry and
injured shareholders. Cannell is gratified that its campaign on
behalf of all shareholders was successful in applying pressure and
revealing facts.
The window for new shareholder nominations to LEE's Board of
Directors closes on September 24,
2019.
In the meantime, this owner is disappointed by what appears to
be a sham search process. Should some fresh blood appear, this
shareholder suspects that it will take the form of a meek candidate
hand-picked by the entrenched incumbents.
CONTACT: info@cannellcap.com
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SOURCE Cannell Capital LLC