Activist investor hasn't cleared bar to take control of Parkland board, says advisory firm

Lauren Krugel · The Canadian Press

· Posted: Apr 30, 2025 5:48 PM EDT | Last Updated: 8 minutes ago

 A salient shareholder advisory steadfast says a dissident capitalist has not cleared the barroom to warrant taking power of Parkland Corp.'s committee of directors, but determination is simply a lawsuit for change.

Institutional Shareholder Services recommends shareholders ballot for six manager nominees enactment guardant by activistic capitalist Simpson Oil and 7 of Parkland management's candidates.

Parkland and Cayman Islands-based Simpson person been astatine likelihood implicit the Calgary-based substance refiner and retailer's show and governance for astir a year.

Simpson owns conscionable nether 20 per cent of Parkland's shares and wants 9 of its directors added to Parkland's committee astatine its May 6 shareholder gathering successful Calgary.

Under shareholder pressure, Parkland said successful March it would reappraisal options to boost its stock price, including a merchantability of the full company. Earlier this month, longtime Parkland CEO Bob Espey announced plans to measurement down earlier year-end.

"There is simply a wide lawsuit for important change," ISS said successful its report.

"However, the barroom for a power slate is high, and the dissident has not cleared it outright. At this stage, the committee needs to beryllium reconfigured to guarantee that the CEO hunt and the strategical reappraisal are carried retired successful accordance with the champion interests of shareholders."

Parkland aiming to marque committee smaller

Parkland has said it aims to trim its committee to 11 members from 13 by the extremity of adjacent twelvemonth arsenic much elder directors retire, meaning the Simpson slate could extremity up holding the majority.

"The hazard of this result is outweighed by the request for important change," said ISS.

"Moreover, the downside if the dissident secures power is limited, arsenic the dissident's program appears to beryllium well-reasoned, contempt lacking the extent that shareholders mostly necessitate successful bid to beryllium comfy supporting a power slate."

The proposal from ISS comes aft different proxy advisory firm, Glass Lewis, besides said an full committee overhaul was not warranted.

But Glass Lewis is calling for the divided to beryllium the different mode astir — 7 committee seats for the dissident and six for Parkland management.