CALGARY – A significant shareholder advisory firm has expressed that a dissident investor has not met the necessary criteria to warrant taking control of the board of directors for Parkland Corp. However, there is potential for change within the company. Institutional Shareholder Services (ISS) has advised shareholders to support the election of six director nominees presented by activist investor Simpson Oil, while simultaneously endorsing seven candidates from Parkland’s management.

This corporate conflict has pitted Parkland against Cayman Islands-based Simpson for approximately one year, with both parties clashing over the Calgary-based fuel refiner and retailer's performance and governance issues. Simpson currently holds just under 20 percent of Parkland’s shares and is advocating for the addition of nine directors to Parkland’s board during the upcoming shareholder meeting, which is scheduled for May 6, 2025, in Calgary.

The recommendations provided by ISS come after another proxy advisory firm, Glass Lewis, also concluded that a complete overhaul of the board was not necessary. However, Glass Lewis has advocated for an alternative distribution of board seats, suggesting that the dissident investor should be allotted seven positions while Parkland management should receive six.

This scenario reflects ongoing tensions in corporate governance, highlighting the divides between activist investors and management claims regarding company performance. Both advisory firms’ recommendations underscore the complexities involved when balancing shareholder interests with existing management structures.

The situation remains fluid as the shareholder meeting approaches, with both parties poised to make their cases to investors. The outcome of this meeting may significantly impact the direction of Parkland Corp. as it navigates its strategic choices amid these governance challenges.

Companies in this context: (TSX: PKI)