The proxy advisor Glass Lewis, one of the major consultants to institutional investors in the shareholders’ meetings of listed companies, invites Leonardo’s shareholders to vote in favor of the liability action brought against the CEO, Alessandro Profumo, by Bluebell Partners, who complains reputational damage from the conviction of the former president of MPS for false accounting and rigging in the trial on derivatives of the Sienese institute.
“The first instance ruling against Alessandro Profumo is a reasonable basis for the liability action,” says Glass Lewis in his voting recommendations ahead of next Wednesday’s meeting.
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At the appointment, the proxy advisors present themselves in no particular order: Glass Lewis, like the smallest Frontis, suggested voting in favor of the activist fund’s proposal while the other major advisor, Iss, spoke out against the liability action .
“Legitimate grievances”
«In general we believe that it is better to leave the decision on these procedures to the management and the board, in the absence of manifestation of a striking or illegal conduct that could threaten the value of the shareholders. In this case, however, we believe the proposer may have some legitimate grievances, ”says Glass Lewis.
The sentence of Profumo, for the proxy, “had a substantial negative reputational impact for the company” and “even if the sentence is subject to appeal, we believe that it serves as a substantial indication that Profumo’s shares can damage the value of shareholders and that the liability action can be justified “.