This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Glass Lewis Supports Clinton Group's Proposals For Change At The Wet Seal

NEW YORK, Sept. 28, 2012 /PRNewswire/ -- Clinton Group, Inc. today announced that Glass, Lewis & Co. ("Glass Lewis") recommends that Wet Seal, Inc. (Nasdaq: WTSLA) stockholders remove all four of the long-standing directors and replace them with four independent professionals nominated by Clinton Group. Glass Lewis recommends that Wet Seal stockholders vote on the white proxy card.

In recommending the removal of Harold Kahn, Henry Winterstern, Sidney Horn and Jonathan Duskin, Glass Lewis said the "directors should be held responsible for the poor decisions and the Company's underperformance during their tenure."

Glass Lewis further noted that "a complete board overhaul is more likely to result in a positive result for shareholders than doubling down and taking another chance on the current board, even with its two new members and supposed newfound ways." Glass Lewis further concluded that it "stand[s] unconvinced of the current board's ability to provide adequate stewardship of the Company over the long term."

"We are pleased to have Glass Lewis' support for the removal of the four long-standing directors and replacement of them with our nominees," said Joseph De Perio, Senior Portfolio Manager of Clinton Group.

Glass Lewis noted that the current Board has reversed course on a number of decisions recently and added two new directors to the Board. "However," noted Glass Lewis, "these corrective actions seem somewhat insincere and look more like knee-jerk reactions after being called out by [the Clinton Group] and other shareholders."

Glass Lewis also recognized that the Clinton Group nominees would bring needed skills and experience to the Wet Seal Board. In particular, Glass Lewis said that the Clinton Group nominees are "well-qualified individuals" and would be "in a better position than the current board to identify and hire the best CEO available for Wet Seal." In comparing the long-standing incumbent directors to the Clinton Group nominees, Glass Lewis said "a fair assessment … based solely on their individual merit, favors multiple Clinton nominees."

Glass Lewis concluded with a rhetorical question: "After multiple missteps and reversals of decisions, resulting in prolonged periods of underperformance, why would shareholders continue to put their confidence in the same board that remains largely unchanged?"

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,125.58 +101.52 0.56%
S&P 500 2,118.20 +9.91 0.47%
NASDAQ 5,032.8750 +27.4840 0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs