In a press release, W. Graeme Roustan, its former chairman of Performance Sports Group who had been seeking a seat on the company's board, indicated he will “forgo standing as a director nominee for the time being.” He als accused PSG's Chairman, Bernie McDonell, of making “unfounded attacks on his character.”
Roustan also inferred that McDonell was willing to spend “close to $1 million of shareholders' money to oppose a single seat for a long-term shareholder and former chairman with sports retail experience demonstrates the entrenchment of the current Chairman and his unwillingness to acknowledge potential significant risks
The press release also said PSG's chairman's opposition to Roustan becoming a director “means that the undertow of short-term decisions remain and threaten long-term value of the company.”
“It is very disappointing to me personally and should be a matter of significant concern to all shareholders of this great company that this chairman has decided to make unfounded personal attacks and spend perhaps $1 million of shareholder money to prevent me, the former chairman with ownership experience in sports retail and a large long-term shareholder, from joining the board and asking the hard questions that need to be asked about the direction of the company,” Roustan said in the release. “This opposition demonstrates to me that, even if I could join the Board at this time, my input would not be encouraged or respected by the current chairman, Bernie McDonell. In addition, I am very uncomfortable with his decision to spend in the neighborhood of $1 million of shareholder money to keep a large, long-term shareholder off the board.”
The full press release is here: http://www.marketwired.com/press-release/entrenched-chairman-shuts-out-experienced-voice-board-chairmans-allegations-against-2058494.htm
As reported, Roustan first approached PSG’s board to seek a seat in January 2015 and has questioned the company’s imminent opening of its first “Own the Moment” Bauer Hockey retail stores. He became chairman in 2008 following Nike’s sale of the company, then Bauer Performance Sports Ltd., to Kohlberg & Co., and resigned as chairman in 2012. He holds around a 1.3 percent stake in PSG.
PSG had sent a letter to shareholders strongly recommending that shareholders vote for its nominees for director and against Roustan, asserting the board ” consistently executed on our growth strategy, and delivered meaningful value for all of our shareholders.”
The company owns the Bauer, Mission, Maverik, Cascade, Inaria, Combat, and Easton brand names
