ISS Backs H Partners In Its Quest To Overhaul Tempur Sealy by Stock Pucker
ISS came out in support of H Partners yesterday, recommending that shareholders oust 3 members of the board. The keys takeaways from the ISS report are below. Emphasis ours.
- “Given the failures of the CEO and the Chairman to address the numerous execution failures manifested over the past three years, as well as the evidence from the long tenures of the Chairman and the third targeted nominee…that their skills and experience are of questionable relevance to the company’s current needs, votes in line with the dissident recommendation AGAINST these incumbents appear warranted.”
- “Sarvary, who joined the board as CEO in 2008, clearly bears responsibility for poor execution not only since 2012, but over the years leading up to that pivotal earnings announcement when it became clear just how unprepared the company had become for the competitive challenges building around it.”
- “Neither McLane nor Masto have industry operating experience: both [are] from private equity firms which were once invested in Tempur-Pedic, and stayed on the board years after those firms exited their positions…they would seem to bear responsibility not only for tolerating the poor preparedness leading up to 2012, but for enabling the poor performance since then.”
Previous Tempur | H Partners coverage: Apr. 8, H Partners Publishes Website On Tempur Sealy ($TPX)