Tuesday July 2,2013 : IGT – ADER PROXY SAGA TAKES AN INTERESTING TURN
Concessions made from both sides
Our readers will recall the bitter in-fighting and at times unsavoury tactics deployed during a public proxy contest prior to International Game Technology's 2013 annual meeting of shareholders where the Ader Group attempted to win four seats on the IGT board, eventually gaining only one.
The proxy contest driven by Jason Ader and former IGT CEO Charles Mathewson saw acrimonious and hostile attacks launched through public statements by both sides.
However, the saga has seemingly taken a turn as IGT's latest statement says it has reached agreement with members of the Ader Group who have agreed to observe certain (unspecified) standstill provisions for four years.
Additionally all claims related to the proxy contest will be released by both sides and IGT will reimburse the Ader Group for expenses incurred in the Proxy challenge up to an amount of $2.5 million.
In a surprising turn-around, the Ader Group has impressed that it "strongly supports IGT's current direction and recognizes the significant contributions under the leadership of Patti Hart, her management team and the Board of Directors to advance the Company's business, strategy and corporate governance practices."
In return, IGT has said it acknowledges that Charles Mathewson was instrumental in driving IGT's leading market share and creating significant shareholder value, during a dynamic growth phase for the Company and the industry.
In the lead up to the shareholder vote, IGT issued a statement accusing Mathewson of questionable compensation conduct during and after his 17 year tenure as IGT's boss