Glass Lewis Backs Barington's Nominees in Matthews International Proxy Fight

The proxy battle at Matthews International Corporation (MATW) just got more intense, as prominent proxy advisory firm Glass Lewis has endorsed all three of activist investor Barington Capital's director nominees. This endorsement could significantly influence the outcome of the proxy contest and potentially reshape the strategic direction of the company.

Barington Capital, led by founder and CEO James Mitarotonda, has been pushing for change at Matthews International, arguing that the company's share price underperformance, poor operational execution, and excessive spending warrant a refresh of the board and a new CEO. The hedge fund, which owns approximately 1.9% of MATW's outstanding common stock, has nominated Ana B. Amicarella, Chan W. Galbato, and Mitarotonda himself for election to the Matthews Board of Directors.

Glass Lewis' endorsement of Barington's nominees is a significant development in the proxy fight, as the advisory firm's recommendations often guide institutional investors' voting decisions. In its report, Glass Lewis highlighted the diverse backgrounds and extensive experience of Barington's nominees in business, finance, and corporate strategy, noting that they would bring fresh perspectives and a deep commitment to shareholder interests to the Matthews board.

The endorsement by Glass Lewis puts additional pressure on Matthews' board to engage in constructive dialogue with Barington and consider their proposals. If the board continues to resist Barington's nominees, they risk losing the support of institutional investors, which could lead to a shareholder rebellion. The endorsement could also encourage Matthews' board to seek a settlement with Barington, potentially avoiding a costly and divisive proxy contest.

Barington's nominees, if elected, could significantly impact the strategic direction and operational decisions of Matthews International in the long term. They might push for improved corporate governance, refocus the company's strategy, and drive operational efficiencies to boost performance and shareholder value. For instance, Barington has already recommended the sale of the SGK Brand Solutions segment, which Matthews recently announced it was pursuing.



In conclusion, Glass Lewis' endorsement of Barington's nominees in the Matthews International proxy fight adds momentum to the activist investor's push for change. The endorsement could influence the outcome of the proxy contest, potentially reshaping the company's strategic direction and operational decisions in the long term. As the proxy battle continues, all eyes will be on Matthews' board and their response to the growing shareholder support for Barington's nominees.