Proxy firms weigh in on the board battle at PENN Entertainment

PENN Entertainment (NASDAQ:PENN) has a key shareholder meeting set for June 17. Shareholders will decide if they want three independent director candidates nominated by HG Vora Capital Management to join the company’s board of Directors.

The vote follows sharp criticism of Penn’s (NASDAQ:PENN) recent performance, particularly regarding its interactive strategy and management oversight. HG Vora said its trio of nominees is positioned as bringing much-needed gaming industry expertise and accountability to the board, amid concerns over disappointing returns and strategic missteps.

Proxy firm Institutional Shareholder Services has weighed in on the vote by recommending that PENN Entertainment (PENN) shareholders vote for all three HG Vora nominees. ISS’s report highlights the casino company’s unsuccessful M&A activities, lack of board accountability, and insufficient gaming industry experience among current directors. ISS praised the qualifications of the HG Vora nominees, noting their industry expertise and potential to address the board’s deficiencies. ISS concluded that supporting the nominees is warranted, which mirrored a similar recent recommendation from proxy firm Egan-Jones.

PENN Entertainment defended itself last month against what it said was a campaign of misstatements and insinuations by HG Vora. “Our Board and management team are actively engaged with all shareholders and remain focused on executing on our strategy to create long-term shareholder value,” read the letter to shareholders.

HG Vora Capital Management is a New York City-based investment management firm founded in 2009 by Parag Vora. The firm specializes in credit, value, and event-driven investments, with a focus on generating attractive risk-adjusted returns for institutional investors. HG Vora also has stakes in Boyd Gaming (BYD), Caesars Entertainment (CZR), and MGM Resorts International (MGM).