TheStreet investor urging others to vote against company directors
A large investor in TheStreet.com has asked other investors to vote against the financial news company’s director candidates and management proposals at its annual meeting, according to a filing with the Securities and Exchange Commission.
J. Carlo Cannell operates Cannell Capital, which owns 3.4 million shares, or 9.5 percent, of TheStreet.
In his filing, Cannell states that the “decisions made by the current management of the Company have failed to enhance shareholder value.”
Cannell and TheStreet have butted heads in the past. In 2014, he asked co-founder Jim Cramer to reduce his salary or sell the company. And in 2015, he asked shareholders to “withhold” their votes for company proposals.
CEO David Callaway declined to comment Thursday on Cannell’s latest filing, noting, “Our position is set out in our own filings.”
The company has asked shareholders to approve board members Sarah Fay, Stephen Zacharias and Betsy Morgan for re-election. In its proxy statement, it states:
“The continued service of Ms. Fay, Mr. Zacharias and Ms. Morgan as directors is in the best interests of our stockholders. In particular, the Board notes that the Company is in the process of implementing the restructuring and growth initiatives that were put in place in 2016. These initiatives as well as the strategy behind them has been developed by the current Board. Accordingly, we believe that the election to the Board of the Dissident Group nominee could adversely affect the Company’s ability to implement this new business strategy and improve the Company’s operating results.”
Cannell has nominated his own person to join TheStreet’s board. The company stated that electing Cannell’s nominee “could adversely affect the Company’s ability to implement this new business strategy and improve the Company’s operating results.”
The company’s annual meeting is next Wednesday 8:30 a.m. at the offices of Orrick, Herrington & Sutcliffe LLP in New York.