Simpson Oil and ISS demand change at Parkland Corporation's AGM
- Simpson Oil Limited is Parkland Corporation's largest shareholder with 19.8% of shares.
- Institutional Shareholder Services and Glass Lewis have criticized the current Board's governance and performance.
- Simpson Oil urges the election of all nine of its nominees to effect meaningful change.
In Canada on April 28, 2025, Simpson Oil Limited, the largest shareholder of Parkland Corporation, announced significant developments concerning the upcoming Annual General Meeting (AGM) set for May 6, 2025. With a 19.8% shareholding, Simpson Oil has expressed growing dissatisfaction with the current Board's performance and governance practices. Institutional Shareholder Services Inc. (ISS) and Glass Lewis & Co. have joined forces to recommend that shareholders elect six of Simpson Oil's nine director nominees for change, highlighting the poor track record of the existing Board, particularly regarding CEO succession planning and corporate governance. Both ISS and Glass Lewis issued strong critiques of the current leadership at Parkland Corporation, labeling the board's behavior as entrenched and reflective of gamesmanship that undermines shareholders' interests. They emphasized the necessity of proactive leadership and criticized the board's failure to consider external candidates for CEO succession, particularly during a pivotal year. This critique aligns with broader concerns involving corporate governance within the company, indicating significant needs for reform and responsible decision-making practices. The call for change stems from a larger dissatisfaction with Parkland's existing practices, as emphasized by Simpson Oil. It urges shareholders to rally behind the GOLD proxy card to implement what it deems necessary leadership changes. They argue that without new directors who are committed to rectifying governance issues, Parkland will continue to face challenges that compromise shareholder value. In light of ISS's and Glass Lewis's assessments, Simpson Oil maintains that all nine of its nominees deserve election to ensure effective oversight. In conclusion, the upcoming AGM has become a pivotal moment for Parkland Corporation. With critical voices from ISS and Glass Lewis supporting Simpson Oil's stance, shareholders are positioned to make a decisive impact on the company's future. The urgency expressed by Simpson Oil underscores the imminent need for an overhaul in governance to protect shareholder interests and restore value, thereby reaffirming the essential role of engaged shareholders in corporate governance discussions.