Two weeks after Brad Tirpak despatched a shareholders’ letter in search of votes towards chairman Howard Lorber, advisory companies Glass Lewis and ISS are echoing the vocal investor’s suggestions.
Whether or not it’s refining your enterprise mannequin, mastering new applied sciences, or discovering methods to capitalize on the subsequent market surge, Inman Join New York will put together you to take daring steps ahead. The Subsequent Chapter is about to start. Be a part of it. Be a part of us and 1000’s of actual property leaders Jan. 22-24, 2025.
Two weeks after Douglas Elliman shareholder Brad Tirpak despatched a letter to fellow stakeholders in search of votes towards chairman Howard Lorber, two impartial proxy companies have really useful a few of Tirpak’s calls for, The Actual Deal reported Tuesday.
Final month, Tirpak urged shareholders to vote towards a proposal concerning govt compensation on the firm’s annual stockholder assembly, which is scheduled for Aug. 21. Tirpak additionally implored the board to start out trying into new choices for a full-time chief govt instantly, with Lorber’s contract slated to run out on Dec. 29.
On Tuesday, Tirpak, a Colorado-based managing director with funding firm Palm Energetic Companions Administration, printed one other letter to shareholders saying that impartial proxy advisory agency Institutional Shareholder Providers (ISS) really useful that stockholders withhold votes on Lorber. The agency additionally really useful that stockholders favorable to Tirpak’s proposal elect administrators on an annual foundation.
Tirpak additionally introduced that impartial advisory agency Glass Lewis was in alignment on one other one in all Tirpak’s suggestions, to vote towards a proposal concerning govt compensation, in order that govt compensation can be extra according to stockholder returns.
“As a reminder, in the recent proxy statement filed on July 11, 2024 with the Securities and Exchange Commission, stockholders learned that the compensation committee of the board of directors significantly lowered the metrics used to measure the success of the Company when awarding executive bonuses,” Tirpak’s new letter reads. “Management was rewarded for losing money in 2023!”
Within the letter dated from July 31, Tirpak criticized Lorber’s management at Douglas Elliman as losses ballooned and share costs declined.
Tirpak additionally introduced up sexual assault allegations that had not too long ago come to mild towards Oren and Tal Alexander, two former prime brokers on the agency who had been affiliated with Douglas Elliman for a decade. Given the information about this scandal, Tirpak questioned how Lorber might obtain the utmost doable award of his bonus pertaining to Range, Fairness and Inclusion.
In response to Tirpak’s preliminary letter, Douglas Elliman informed Inman that the corporate’s board of administrators and administration crew “maintain an open dialogue with, and value constructive input from, our stockholders. The Company continually evaluates options to enhance long-term value and is committed to acting in the best interests of all our stockholders, agents and clients. Douglas Elliman will carefully review Mr. Tirpak’s letter.”
When requested about Tirpak’s second letter, the brokerage asserted, because it has achieved beforehand, that it had by no means acquired any formal grievance concerning the Alexanders.
“The Company never received any complaints of sexual assault or harassment in connection to Oren or Tal Alexander, nor was management aware of any such claims,” an announcement from the agency stated. “Had any such complaints been received, those complaints would have been thoroughly investigated consistent with our policies and procedures.”
Lorber earned greater than $4.7 million throughout 2023, excluding inventory awards, which had been up by greater than $600,000 from 2022, based on paperwork filed with the Securities and Trade Fee.
ISS, Glass Lewis and different related advisory companies usually assess company governance of public firms after which make suggestions to buyers. Each firms weighed in on the re-election of Toyota Motors chairman Akio Toyoda earlier this 12 months, recommending shareholders vote towards his re-election, though he finally retained his put up as chairman.
Get Inman’s Luxurious Lens Publication delivered proper to your inbox. A weekly deep dive into the largest information on the earth of high-end actual property delivered each Friday. Click on right here to subscribe.
