SBS Shareholders Withheld Votes, But Slate Elected Anyway
June 18, 2008 at 5:19 AM (PT)
DISCOVERY GROUP says that its urging that the shareholders of SPANISH BROADCASTING SYSTEM withhold their votes for the company's director nominees at the company's JUNE 3 annual meeting resulted in over 80% of Class A shareholders withholding their votes, excluding SBS and CBS insiders. The slate won election because CEO RAUL ALARCON holds a majority of votes.
"The message to the Board is clear," said DISCOVERY Managing Parter DANIEL J. DONOGHUE. "Public shareholders refuse to tolerate the blatant lack of director independence, egregious pay and benefits lavished on company insiders, and a history of terrible operating performance."
DISCOVERY has recommended that the Board establish a Special Committee to hire an investment bank to pursue going private, a sale of the company, or a revamping of the Company’s corporate governance. DISCOVERY owns 9.8% of SBS's Class A common stock.