Business
Leading Governance Groups Support Board
Leading Governance Groups Support Board.
About this update from Mobico Group Plc
[{"type":"text","content":"\n \nRNS Number : 5378F National Express Group PLC 27 April 2011 \n \n\n \n27 April 2011\nNational Express Group PLC\nLeading Governance Groups announce support for National Express Board\n \n \nThe Board of National Express Group plc welcomes the news that three leading corporate governance advisory groups have urged shareholders to support the Board at its forthcoming AGM on May 10th by voting against the motions tabled by Elliott Advisors, the activist US hedge fund.\n \nIn a strong demonstration of support for the Group, its corporate strategy and its standards of corporate governance, ISS Governance Services, Glass Lewis & Co LLC and PIRC have all recommended that their subscribers should vote AGAINST all of the Elliott Advisor nominees who are standing for election to the Board and FOR the two National Express directors who are seeking re-election.\n \nIn its report ISS, through its RREV Proxy Advisory Services unit, commented: \"There is a consensus that the turnaround led by CEO [Dean] Finch has been a success, with NEX significantly outperforming peers since its 2009 rights issue…the dissidents have not met their burden of proving that some change on the Board is warranted\".\n \nGlass Lewis's report comments: \"We question the timing of Elliott's solicitation and find much of the Dissident's stated plans to be similar to, or duplicative of, efforts currently being undertaken by the Board in connection with the ongoing restructuring of National Express…We do not find Elliott's argument compelling\".\n \nGlass Lewis continues with a strong endorsement of National Express under its current strategy and management. \"The Board's efforts, which have covered less than two full years, have resulted in quantifiable returns for shareholders. We believe that Elliott has failed to provide shareholders compelling reason to forgo a thus-far successful reorganization in favour of transactions that would dramatically alter National Express going forward.\"\n \nPIRC commented: \"The Board has gone through significant change recently with new CEO, CFO and Chairman appointments which indicates the Nomination Committee's willingness to make governance changes […] at this stage, an oppose vote is therefore recommended in respect of all three proposed candidates.\"\n \nJohn Devaney, Ch...