Activist company

Guess shareholders re-elect Marciano Brothers to board – Sourcing Journal

Guess executives Paul Marciano and Maurice Marciano will remain on the denim brand’s board after its annual shareholders meeting on April 22. Shareholders voted to re-elect all four directors, including the Marcianos, as well as Anthony Chidoni and Cynthia Livingston.

“The Board of Directors and the management team remain focused on maintaining the momentum of Guess, executing our transformation strategy and driving long-term growth and value creation,” said the company said in a statement. “We will continue to engage with our shareholders and remain true to our commitment to act in the best interests of society and all Guess shareholders. The Board of Directors takes its fiduciary duties very seriously, believes in legality and will continue to make its decisions based on factual findings.

The vote follows a call for the removal of the two brothers led by activist investment firm Legion Partners, which launched its campaign earlier this year when new allegations were made against Paul.

In February, a model called “Jane Doe 3” alleged he raped her without a condom in February 2013 while she was visiting the United States, adding to a series of sexual misconduct accusations against Paul. dating back to 1983. The investment firm previously said it was “deeply concerned about the lack of good judgment shown by the Guess board in continuing to allow co-founder Paul Marciano to serve as as a member of the board and as the company’s chief creative officer”, and that “as human beings we are appalled. He also called for the removal of Maurice on the belief that he allowed the Paul’s cycle of abuse.

Although typically held in June, the annual shareholders’ meeting was moved to April to give shareholders the opportunity to vote as soon as possible and “minimize the disruption and distraction to management caused by Legion’s campaign,” it said. Guess said. Legion Partners, on the other hand, saw the rescheduling as an attempt to “freeze current equity positions.”

In a statement released April 22, the company noted that 83% of unaffiliated shareholders voted to remove Paul from the board in a preliminary vote.

“The fact that approximately 83% of uninitiated shareholders who voted opposed Paul Marciano continuing to serve on the Guess board speaks volumes,” the company said. “It is inconceivable and deeply disturbing that in today’s world someone like Paul Marciano could retain a senior executive position despite more than a dozen sexual harassment allegations against him. It’s also disappointing that Paul’s brother, Maurice, has, in our view, helped perpetuate the status quo.

Despite the vote, the battle continues.

“The board must take action to resolve the remaining issues at Guess and we are asking them to remove the Marciano brothers from the business,” he added.