Sunday, 3 May 2015
Last updated 2 days ago
Jul 1 2014 | 7:24am ET
Activist hedge fund Sandell Asset Management has been quiet for a few months. But the New York-based firm is once again firing upon two of its targets, FirstGroup and Bob Evans Farms.
Sandell has called on FirstGroup to split its U.S. bus operations, including Greyhound Lines, from its British rail and bus operations, complaining that its current structure has led shares to seriously underperform peers. Given that unhappiness, it’s perhaps no surprise that the hedge fund thinks that CEO Tim O’Toole makes too much.
“We strongly believe that management’s and shareholders’ interests should be aligned and that properly structured rewards can incentivize management teams,” the hedge fund wrote. “We simply do not believe that a 94% rise in remuneration package is deserved for Mr. O’Toole’s 2013/14 performance.”
Sandell said it would vote against FirstGroup’s remuneration report at its annual meeting in two weeks. It also pushed the company to name its own nominees for an independent directorship on FirstGroup’s board to provide “sector expertise” on the U.S. The nominee was not identified.
Sandell’s hostilities with restaurant chain Bob Evans were also renewed when the company accused the hedge fund of refusing to compromise to avoid a proxy battle.
Bob Evans has conceded two seats on its board to Sandell nominees. But the hedge fund wants four of the 12 board seats and for Bob Evans to commit to its proposed changes.
Sandell shot back that “Bob Evans is doing nothing more than trying to appear as if they are willing to compromise, all while seeking to entrench themselves and maintain the status quo while failing to unlock value.”
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…