Two weeks after Brad Tirpak sent out a shareholder letter seeking a vote against chairman Howard Lorber, advisory firms Glass Lewis and ISS have also responded to the outspoken investor suggestions.
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Two independent proxy firms recommended Tirpak, two weeks after Douglas Elliman shareholder Brad Tirpak sent a letter to other stakeholders seeking a vote against Chairman Howard Lorber some requirements, the real deal reported on Tuesday.
Last month, Tilpac urged shareholders to vote against proposals on executive pay at the company’s annual shareholder meeting, scheduled for August 21. Bob’s contract expires on December 29.
On Tuesday, Til Parker, a Colorado-based managing director at investment firm Palm Active Partners Management, issued a separate letter to shareholders announcing that independent proxy advisory firm Institutional Shareholder Services (ISS) recommended that shareholders retain their vote for Lorber. The company also recommends that shareholders who support Tirpak’s proposal elect directors annually.
Tilpack also announced that independent advisory firm Glass Lewis was aligned with another of Tilpack’s recommendations to vote against a proposal on executive compensation so that executive pay would be more in line with shareholder returns.
“As a reminder, in the most recent proxy statement filed with the Securities and Exchange Commission on July 11, 2024, shareholders learned that the Board’s Compensation Committee materially reduced measures of the Company’s success when awarding executive bonuses,” Tirpak’s the new letter reads. “Management’s money loss was rewarded in 2023!”
In the July 31 letter, Tilpark criticized Lorber’s leadership at Douglas Elliman as losses surged and the stock price fell.
Tilpark also brought up recently revealed sexual assault allegations against Oren and Tal Alexander, two former top agents who had a decade-long relationship with Douglas Elliman. In light of news about the scandal, Tilpark questioned how Lorber could be awarded the maximum possible bonus related to diversity, equity and inclusion.
In response to Tilpark’s initial letter, Douglas Elliman told Inman that the company’s board and management team “maintain an open dialogue with shareholders and value their constructive input. The company continually evaluates options to enhance long-term value and is committed to Douglas Elliman will carefully review Mr. Tilpark’s letter.
Asked about Tilpark’s second letter, the agency insisted, as it had done previously, that it had never received any formal complaints about the Alexanders.
“The company has never received any complaints of sexual assault or harassment related to Oren or Tal Alexander, and management is not aware of any such allegations,” the company said in a statement. “If any such complaint is received, Complaints will be investigated thoroughly in accordance with our policies and procedures.”
Lorber earned more than $4.7 million in 2023, not including stock awards, which increased by more than $600,000 from 2022, according to filings with the Securities and Exchange Commission.
ISS, Glass Lewis and other similar advisory firms often evaluate the corporate governance of public companies and then make recommendations to investors. Earlier this year, both companies weighed in on the re-election of Toyota Motor Chairman Akio Toyoda, recommending shareholders vote against his re-election, although he ultimately retained the chairmanship.
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