NEW YORK–(BUSINESS WIRE)–UNITE HERE announced today that PENN Entertainment, Inc. (NASDAQ: PENN) shareholders approved the advisory proposal to declassify the Company’s Board of Directors at PENN’s Annual Meeting of Shareholders held on June 16.
This marks the second time a majority of PENN shareholders have backed board declassification, following majority support for a similar proposal presented in 2010.
“PENN shareholders have spoken clearly: they want annual elections for all directors,” said Michael Hachey, Director of Gaming Industry Research at UNITE HERE. “The Board should now take the necessary steps toward implementing declassification.”
“Investors will be looking for real, timely responsiveness here; not performative action that kicks the can down the road, and certainly not silence from leadership,” said Derrick Wortes, founder and principal of Cora Strategies, a boutique advisory firm focused on shareholder activism, corporate governance, and investor engagement.
Annual director elections are widely recognized as a cornerstone of effective corporate governance, providing shareholders with a regular mechanism to evaluate board performance and hold directors accountable for their oversight. A classified board structure can insulate directors from shareholder feedback and diminish a board’s responsiveness to investor concerns.
“By adopting annual elections, PENN would strengthen alignment between directors and shareholders and bring its governance practices more closely in line with investor expectations,” said Hachey. “We look forward to seeing how the Board takes action.”
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