SPO Advisory Trims Stake in Embattled Resolute Energy Corp (REN), Plus Three Other Hedge Fund Moves

Proxy Advisory Firms Support 2 out of 3 Engaged’s nominees in Proxy Contest with Benchmark Electronics

Let’s wrap up our discussion by having a look at the ongoing proxy fight between Glenn W. Welling’s Engaged Capital LLC and Benchmark Electronics Inc. (NYSE:BHE). In a recent SEC filing, Engaged Capital disclosed that independent proxy advisory firm Glass Lewis & Co. recently recommended Benchmark shareholders to vote for the election of the activist shareholder’s director nominees, Robert K. Gifford and Jeffrey S. McCreary, to the Board at the company’s upcoming annual meeting of shareholders.

Engaged Capital, which owns 2.43 million shares of the electronics manufacturing services company, has been seeking the support of shareholders to land three director nominees on Benchmark Electronics Inc. (NYSE:BHE)’s Board at the May 11 annual shareholder meeting, but Glass Lewis & Co. recently recommended Benchmark shareholders vote against the appointment of the third Engaged-designated nominee, Brendan Springstubb. This comes after another leading proxy advisory firm, Institutional Shareholder Services Inc. (ISS), issued a similar endorsement last week. To be more detailed on what Glass Lewis & Co. commented about this proxy contest, the proxy advisory firm believes “the Dissident [Engaged Capital] has established a compelling case that additional changes at the board level are warranted at this time. All in all, it appears that Benchmark does require “a fresh shareholder-focused perspective in the boardroom”. Royce & Associates, founded by Chuck Royce, held a 2.43 million-share position in Benchmark Electronics Inc. (NYSE:BHE) at the end of December.

Disclosure: None