International Game Technology (IGT:US), the largest slot machine maker, said shareholders elected one board nominee proposed by a dissident investor group critical of the company’s strategy and stock performance.
Investors elected Daniel Silvers, one of three nominees proposed by former casino analyst Jason Ader, according to Mariya Barnes, a spokeswoman for Las Vegas-based IGT. Two other dissidents, including the former chairman and chief executive officer, were rejected at the annual meeting today.
Current management, led by Chairman Philip Satre and CEO Patti Hart, has argued the company is turning around and making the online investments necessary to meet the demands of younger gamblers. The dissidents, including former chairman and CEO Charles Mathewson, had argued the company was neglecting its core business.
“IGT has seen a $1 billion increase in market value since the Ader Group started pressuring management,” Ader said in a telephone interview. “We plan on keeping the pressure on management and seeking additional seats next year. Our goal is to improve IGT’s discipline in corporate governance and capital allocation.”
IGT rose 2.1 percent to $16.86 at the close in New York. The stock has gained 19 percent this year.
Silvers is an executive with Ader Investment Management. He was recommended by the proxy advisory firm Institutional Shareholder Services. David Roberson, a former Hewlett-Packard Co. (HPQ:US) executive, wasn’t re-elected, Barnes said. Vote counts weren’t immediately available.
IGT said about 80 percent of its 265 million shares outstanding were voted at the meeting.
Silvers received 112 million votes. Mathewson received 29 million and Raymond J. Brooks Jr., the third nominee, received 32 million, according to the company. Roberson received 84 million, least among the incumbents.
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