The shareholders of Hess Corp should elect all five directors nominated by Elliot Management Corp for its May 16 annual meeting. This was the advice provided by proxy adviser Instittutional Shareholder Services.
According to ISS, Hess has 'substantially underperformed' and new leadership would only produce results according to MSCI Inc, a unit of ISS. The advice was provided through a note sent to its clients that was obtained by Bloomberg News.
The endorsement of the Paul Singer owned Elliot director list was included in the advice to its clients. This followed a May 1 Glass Lewis & Co recommendation to do the same. The two proxy advisory firms hold 60% of the market for mutual funds and other institutional investors. Another proxy advisory firm Egan-Jones Proxy Services also endorsed the board slate last May 2.
In its note, ISS stated, "The dissident nominees appear to have more relevant, robust experience -- particularly boardroom experience -- than the management nominees, but also do not owe any allegiance to the incumbent CEO and directors."
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