Avis Budget's Board Slate Includes Three Picks From Largest Shareholder -- Update
22 March 2018 - 11:26AM
Dow Jones News
By Maria Armental
Avis Budget Group Inc. (CAR), which has been locked in a fight
with its biggest stakeholder, SRS Investment Management, is urging
investors to support a slate of board nominees that includes three
candidates picked by SRS.
The car-rental company said in a proxy filing Wednesday that
among the candidates it endorsed are Sanoke Viswanathan, a mutually
agreed-upon independent director who has served on Avis's board
since 2016, SRS President Jagdeep Pahwa and Carl Sparks, who most
recently worked as chief executive of Insight Ventures-backed
Academic Partnerships.
Avis lead independent director Leonard Coleman said the
12-nominee slate demonstrates the company's "willingness to work
cooperatively with a significant shareholder to advance the best
interests of all shareholders."
Left out: SRS partner Brian Choi, who was appointed to the board
with Mr. Viswanathan under the 2016 pact with SRS and most recently
served on the compensation committee.
That means that, if elected, SRS would control three board
seats. SRS had sought to add three seats to the two it already
controlled.
Avis also proposed adding Francis Shammo, former Verizon
Communications Inc. (VZ) finance chief, and Glenn Lurie, CEO of
Synchronoss Technologies Inc. (SNCR), as independent nominees to
the board.
After Avis's announcement on Wednesday, SRS indicated it
intended to continue the fight.
Avis's proposed slate, SRS said in a statement, "falls short of
achieving the board refreshment that we believe is necessary to
enact meaningful change for Avis stockholders. Accordingly, we
intend to move forward with the nomination of our five director
candidates" at Avis's annual meeting.
A SRS representative declined to comment beyond the
statement.
Avis and SRS have been publicly sparring this year over how many
seats the investor's stake warranted. Avis had previously said it
attempted to offer SRS a third seat, but SRS had rejected that
compromise because of the strings the company sought to attach to
the new agreement. SRS said its requests for more of a say fit the
size of its investment, but Avis said it felt the investor was
seeking to gain control.
The stock, which Tuesday set a 52-week high, closed Wednesday
down 1.9% at $49.40. Avis shares were unchanged after hours.
--David Benoit contributed to this story.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
March 21, 2018 20:11 ET (00:11 GMT)
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