ISS backs two Bergeron nominees in Ethan Allen proxy fight
ETD•ISS recommended that Ethan Allen shareholders elect activist Doug Bergeron and Stephen Oblak to the board while opposing CEO Farooq Kathwari and director David Sable. Shareholders will vote on directors November 4.
1. ISS recommendations
ISS recommended that shareholders elect Bergeron and his nominee Stephen Oblak, and withhold votes from Kathwari and director David Sable. The adviser said DGB Investments had presented “a compelling case for change,” but had not cleared the high bar for a control slate.
2. Board contest
DGB Investments, led by Bergeron and holding 5.2% of Ethan Allen, has nominated five candidates. Glass Lewis and Egan-Jones Proxy Services have recommended voting for all five. Ethan Allen said it would name a successor to Kathwari, whose tenure is nearly four decades, by June 30, 2027; Bergeron called that “too little, too late.”
