The raucous five-month battle that engulfed the T-shirt maker came to a sudden conclusion late Thursday, when Gildan’s entire board of directors and CEO Vince Tyra quit, admitting defeat at the hands of activist investor Browning West. [...] Chamandy initially said that they didn’t see eye to eye with the CEO on the timing of a leadership handover and they worked until the very last moment to try to hammer out a compromise with him. [...] The board decided to step down after receiving roughly 15 per cent of votes cast, according to information obtained by The Globe and Mail. [...] The Globe and Mail agreed not to identify the individual because they are not permitted to speak for Gildan. [...] When the two firms endorsed the Browning West slate instead, directors were shocked and realized they were likely to be voted out, according to two sources familiar with the board’s deliberations.
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- NICOLAS VAN PRAET AND ANDREW WILLIS MONTREAL AND TORONTO PUBLISHED MAY 24 2024 httpswww.theglobeandmail.combusinessarticle-at-gildan-a-boards-defeat-offers-lessons-in- shareholder-management 1
- Glenn Chamandy co-founder of Gildan Activewear Inc. GIL-T left his job as chief executive 1
- The raucous five-month battle that engulfed the T-shirt maker came to a sudden conclusion late 1
- Thursday when Gildans entire board of directors and CEO Vince Tyra quit admitting defeat 1
- 5 per cent of Gildans shares has now taken control of the company and will reinstate Mr. 1
- Chamandy as CEO with United Rentals Inc. CEO Michael Kneeland becoming chairman. 1
- Mr. Tyras bio has already been scrubbed from the Gildan website. 1
- The feud was a rare case of activists pushing for the status quo. And though its often hazardous 1
- Gildans legacy board the directors who dismissed Mr. Chamandy last December werent fast 1
- Other experts say those directors underestimated the strength of Mr. Chamandys backing from 1
- Browning West and other institutional investors and their resolve. 1
- It does show that sometimes the personality the charisma and the history of a long-time CEO 2
- Former Gildan chairman Don Berg and the other directors who dismissed Mr. Chamandy 2
- Even if the boards process to address CEO succession was appropriate engaging advisers and 2
- I dont think the lesson is that shareholders should micromanage the board because I think the 2
- Gildans board decided to resign on Thursday after counting shareholder votes cast ahead of 2
- Browning Wests slate of directors had amassed more than enough support to win the battle. 2
- The board decided to step down after receiving roughly 15 per cent of votes cast according to 2
- Two departed Gildan executives Mr. Tyra and executive vice-president Arun Bajaj will receive 2
- Tyra walked away with approximately US16-million in total while Mr. Bajaj received about 2
- US8-million according to one source familiar with the companys compensation plan. The 3
- Globe and Mail agreed not to identify the individual because they are not permitted to speak 3
- Gildan also halted a sales process launched last winter by the previous board after the company 3
- The now-departed board members expected to win endorsements from two shareholder 3
- Lewis are extremely influential in determining how index funds cast ballots. 3
- With Browning West controlling the company Gildan is now expected to take a series of steps 3
- 19-per-cent annual earnings per share growth through 2028 BMO Capital Markets analyst 3
- Stephen MacLeod said in a research note Friday. 3
- The plan is to move production of basic clothing including T-shirts and socks from facilities in 3
- Latin America to a newly constructed lower-cost factory in Bangladesh. Gildan would then 3
- Glenn Chamandys return as CEO is the best outcome for everyone because of his operational 3
- He said the most important near-term catalyst for Gildan stock would be if Mr. Chamandy 3
