Matthews International Announces Governance Changes Ahead of Shareholder Vote
Matthews International unveiled plans to overhaul its corporate governance structure, including appointing an independent board chair, adding an experienced EV and battery expert to the board, and revising bylaws to mandate annual elections for all directors.
The move comes as investors, led by activist hedge fund Barington Capital Management, call for broader changes at the company. Barington, which owns around 2% of Matthews' shares, has nominated three candidates for this year's board election.
Key Changes:
* Appointment of a new independent board chair by next year's annual meeting
* Selection of a new independent director with expertise in EV and battery technologies
* Amendment of bylaws to mandate annual elections for all directors
Investor Perspective:
Barington has argued that the changes are necessary to boost shareholder value, find a successor for long-serving CEO Joseph Bartolacci, and explore strategic adjustments, including potential divestments.
Proxy Advisory Firm Recommendations:
All three major proxy advisory firms have endorsed Barington's candidates, urging shareholders to vote in their favor.
Matthews' Response:
Matthews CEO Joseph Bartolacci called Barington's actions a "desperate attempt" to maintain the status quo. He claimed that the governance changes were unrelated to Barington's campaign but described them as "too little, too late."
Shareholders have until February 20 to cast votes in the board election. The outcome of the vote will determine the future direction of Matthews International.