Proxy advisory firm Glass Lewis backs Bergeron in Ethan Allen fight
ETD•Glass Lewis recommended that Ethan Allen investors vote for all five director candidates backed by activist Doug Bergeron, who owns 5.2% of the company. Investors will vote on the directors on November 4.
1. Glass Lewis backs slate
Glass Lewis recommended that investors vote for all five director candidates backed by Bergeron, including Bergeron himself. The firm described DGB Investments’ strategic and financial agenda as “credible” and said its slate appeared prepared to address accountability, operational performance and shareholder value.
2. Board contest
Bergeron and DGB Investments own 5.2% of Ethan Allen and are seeking to replace all five directors. The recommendation follows a similar one by Egan-Jones Proxy Services last week; Institutional Investor Services had not yet published its report. Bergeron has argued that his slate could restore profitable growth and potentially triple shareholder value over three years.
3. Succession plan
Ethan Allen has said it will name a successor to CEO Farooq Kathwari no later than June 30, 2027. Kathwari, 82, will lead the company during the search and remain on the board until the 2027 annual meeting; Bergeron called the plan “too little, too late.”
