In a letter on Monday to the shareholders of Saks Incorporated (NYSE:SKS), hedge fund manager Peter Schoenfeld called for corporate governance improvements at the troubled department store.
Mr. Schoenfeld is the CEO of P. Schoenfeld Asset Management (PSAM), which owns 2,137,265 shares of SKS, representing approximately 1.5% of the company’s shares outstanding.
As part of the hedge fund’s proposals, PSAM is urging Saks shareholders to:
Withhold their support for the re-election of C. Warren Neel to the Saks Board. Mr. Neel currently is a member of Saks' Governance and Nominating Committee, which in the view of PSAM has failed Saks and its shareholders.
Vote to end Saks' staggered Board. PSAM believes that Saks' staggered Board, which provides that directors are elected for three-year terms, reduces Board member accountability and breeds complacency. PSAM believes that shareholders should have the opportunity to vote for all Board members each year.
Support the proposal submitted by the New England Carpenters' Pension Fund to implement majority voting for Board member elections. PSAM believes that majority voting in the election of directors is necessary to hold Saks' directors accountable for their actions.