Gildan Activewear Inc. shareholders have elected the company’s newly returned CEO to its board alongside a slate of candidates put forward by activist investors, capping a months-long battle over leadership of the company.
The election is another vote of confidence for Glenn Chamandy, who took the helm of the company last week after being ousted from the top job last year amid accusations that he was no longer fit to run the firm.
Chamandy told reporters in Montreal on Tuesday that Gildan’s conduct over the past several months showed “poor judgement,” and was stressful for him, his family and employees at the company.
“I was a little saddened, I would say, by the way I think the board handled the succession — and handled me personally,” he said.
Activist shareholders, including Browning West, pushed for Chamandy’s return to the Montreal-based apparel manufacturer for months after former Fruit of the Loom executive Vince Tyra took over Gildan’s CEO post.
In a shock move last week, Tyra and Gildan’s board stepped down, paving the way for Chamandy’s return and for Browning West’s slate of directors to be elected.
Chamandy said the new board slate received “overwhelming support” from shareholders. The final numbers will be tallied by Wednesday morning, he said.
The board battle cost the company about US$65 million, Chamandy said, though the total expense is still being tabulated.
“This is probably the largest proxy fight in history, even more so than Disney, for example, which is 40 times our size. This board was very entrenched and I think was very abusive to shareholders’ money.”
The US$65 million includes severances to the outgoing board members and two executives, the company sale process — since scrapped — and legal costs, including a pair of lawsuits launched by Gildan against activist investor Browning West LP, Chamandy said. That doesn’t include his severance, which he said he never received.
Those suits were dismissed earlier this month by the Superior Court of Quebec and the Quebec Financial Markets Administrative Tribunal.
Leading proxy firms Institutional Shareholder Services Inc., Glass Lewis and Egan Jones had all recommended Browning West’s group of candidates be elected.
In April, Gildan previously replaced five directors and said it would back two Browning West nominees.
This report by The Canadian Press was first published May 28, 2024.
Companies in this story: (TSX:GIL)