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GRAND CAYMAN - Glass Lewis & Co., a prominent independent proxy advisory firm, has recommended that shareholders of Parkland Corporation vote for a significant change in the company’s board of directors at the upcoming Annual General Meeting (AGM) on May 6, 2025. The advisory firm supports the election of seven out of nine director nominees proposed by Simpson Oil Limited, Parkland’s largest shareholder with a 19.8% stake.
The call for change comes in the wake of Parkland’s prolonged underperformance and repeated financial and strategic execution challenges. Glass Lewis highlighted the need for stronger independent board oversight to foster shareholder value creation and strategic discipline. InvestingPro analysis reveals concerning metrics, including weak gross profit margins of 12.63% and revenue decline of 12.79% in the last twelve months. The company’s shares currently trade below their InvestingPro Fair Value, suggesting potential for improvement under stronger leadership.
Glass Lewis’s report also pointed out serious governance concerns, including a pattern of board entrenchment and reactive decisions that prioritize control retention over transparent, shareholder-focused outcomes. The incumbent board’s past reluctance to consider strategic alternatives, despite persistent underperformance, was criticized as well.
In light of the simultaneous CEO succession process and strategic review, Glass Lewis emphasized the importance of a board that is credibly independent, compositionally balanced, and strategically focused. A majority refresh is deemed necessary to realign board composition with shareholder expectations and ensure credible oversight of these critical processes.
Simpson Oil, advocating for the election of all nine of its nominees, reaffirms its commitment to a dual track process: conducting a comprehensive strategic review while repositioning the company for long-term success, with the aim of maximizing value for all shareholders.
The firm expressed satisfaction with Glass Lewis’s recognition of the need for substantial boardroom change at Parkland due to poor governance and ineffective leadership. Simpson Oil urges shareholders to vote for its full slate of nominees using the GOLD Proxy Card.
Shareholders are reminded to visit www.RefuelParkland.com for details on how to vote for Simpson Oil’s director candidates. The deadline for proxy submissions to Simpson Oil is 5:00 p.m. (Calgary time) on May 1, 2025.
This report is based on a press release statement from Simpson Oil Limited.
In other recent news, Parkland Corporation has reported its fourth-quarter 2024 earnings, which did not meet analyst expectations. The company revealed an earnings per share of $0.57, falling short of the projected $0.6822, and recorded revenue of $6.73 billion, below the forecasted $7.64 billion. Parkland’s financial performance has led S&P Global Ratings to revise the company’s outlook from stable to negative, citing the weaker than expected results and challenging market conditions in North America. Additionally, Parkland has announced a leadership change, with CEO Bob Espey stepping down amid pressure from its largest shareholder, Simpson Oil Limited.
Simpson Oil, holding a 19.8% stake in Parkland, has proposed a complete overhaul of Parkland’s Board of Directors, nominating nine new candidates. This move is part of their strategy to improve performance and accountability within the company. Furthermore, Raymond James has maintained its Outperform rating on Parkland but lowered the stock price target from C$47.00 to C$45.00, reflecting the company’s recent financial underperformance and leadership changes.
Meanwhile, Revvity, Inc. has received FDA approval for its Auto-Pure 2400 liquid handling platform, which will be used with the T-SPOT.TB test, enhancing the efficiency of latent tuberculosis diagnostics. Revvity reported revenues exceeding $2.7 billion in 2024, highlighting its significant presence in the global market. These developments underscore the dynamic landscape faced by Parkland and Revvity as they navigate financial, leadership, and market challenges.
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