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Glass Lewis backs McDonald’s directors in boardroom fight with Carl Icahn -Breaking

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© Reuters. FILEPHOTO: This sign displays the logo near a McDonald’s Moscow restaurant on May 16, 2022. REUTERS/Evgenia Novozhenina

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By Svea Herbst-Bayliss

BOSTON (Reuters), – On Tuesday, Proxy advisory company Glass Lewis recommended that McDonald’s Corp (NYSE) shareholders vote in favor of the company’s directors. This was a blow to billionaire Carl Icahn’s attempts to replace two directors.

Glass Lewis said in the report, seen by Reuters that the Dissident Icahn has not made a compelling case for the changes to the boardroom.

Icahn representatives did not respond immediately to the request.

This report was issued one day after Institutional Shareholder Services (a larger competitor to Glass Lewis), also suggested that shareholders support the nominees. McDonald’s shareholders are scheduled to meet May 26.

Icahn appointed candidates for the board of the fast-food restaurant to make the company responsible for its pledges made 10 years ago regarding pork sourcing.

McDonald’s claims it is working to improve its pork source. It is still behind on its plan to end buying pork from small-crate suppliers. Glass Lewis and ISS both say that Icahn raised animal rights awareness.

Glass Lewis said that Icahn’s efforts to improve animal welfare conditions are worthy and noble. But the advisory firm also criticized Icahn, saying he had taken a “decidedly simplistic and myopic view of ESG concerns, with no substantive regard given to the economics of the Company’s business nor to the creation of shareholder value.”

McDonald’s claimed that Icahn’s nominations for two board members lack broad expertise. Glass Lewis stated that Icahn’s nominees “lacks the required background, qualifications, and experience to serve on the board at a multinational company like McDonald’s.”

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