Two weeks after Brad Tirpak despatched a shareholders’ letter in search of votes towards chairman Howard Lorber, advisory corporations Glass Lewis and ISS are echoing the vocal investor’s suggestions.
Whether or not it’s refining your corporation 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 hundreds 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 unbiased proxy corporations have beneficial a few of Tirpak’s calls for, The Actual Deal reported Tuesday.
Final month, Tirpak urged shareholders to vote towards a proposal relating to government compensation on the firm’s annual stockholder assembly, which is scheduled for Aug. 21. Tirpak additionally implored the board to begin trying into new choices for a full-time chief government instantly, with Lorber’s contract slated to run out on Dec. 29.
On Tuesday, Tirpak, a Colorado-based managing director with funding firm Palm Lively Companions Administration, printed one other letter to shareholders asserting that unbiased proxy advisory agency Institutional Shareholder Providers (ISS) beneficial that stockholders withhold votes on Lorber. The agency additionally beneficial that stockholders favorable to Tirpak’s proposal elect administrators on an annual foundation.
Tirpak additionally introduced that unbiased advisory agency Glass Lewis was in alignment on one other one in every of Tirpak’s suggestions, to vote towards a proposal relating to government compensation, in order that government compensation can be extra consistent with 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 lately 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 may obtain the utmost attainable award of his bonus pertaining to Range, Fairness and Inclusion.
In response to Tirpak’s preliminary letter, Douglas Elliman advised 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 accomplished beforehand, that it had by no means acquired any formal grievance in regards to 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 mentioned. “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 comparable advisory corporations typically assess company governance of public corporations after which make suggestions to buyers. Each corporations 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 in the end retained his put up as chairman.
Get Inman’s Luxurious Lens E-newsletter delivered proper to your inbox. A weekly deep dive into the most important information on this planet of high-end actual property delivered each Friday. Click on right here to subscribe.
