Deckers Outdoor Corp. (DECK) - Get Deckers Outdoor Corporation Report on Tuesday set September 15 as the deadline for shareholders to submit director nominations for the UGG-boots maker's December annual meeting in a move that comes as at least three activist investors are agitating for change.
The company also postponed its annual meeting, which usually takes place in September, until Dec. 14. The move comes as it deals with activist investor Mick McGuire and his Marcato Capital Management LLC. In June, McGuire said he would launch a director contest to replace Deckers entire board if an ongoing strategic review process didn't culminate in a sale of the whole company at a fair price. Marcato owns a 6% stake. Deckers launched a strategic review process in April.
Last month, Angel Martinez, the ex-CEO and most recently Deckers chairman resigned from his position as chairman of the board. However, Martinez remains a director on Deckers board. Marcato Capital Management LLC's McGuire had made known his displeasure about Martinez' political ambitions and had criticized his run for mayor of Santa Barbara, Calif. as a distraction from his Deckers duties.
In May another activist, Corvex Management LP's Keith Meister, revealed a 427,000 share, or $25 million stake in the firm. Red Mountain Capital Partners LLC, also an insurgent investor, also owns an interest in the company of about 3%.
The postponed annual meeting, which was announced June 6, likely was met by McGuire as a stalling tactic, leading to Marcato's escalation.
Nevertheless, it is unclear whether Martinez's resignation will be enough to appease the activists at the gate. If not, look for a director-election battle to emerge by next Friday.
The company retained Moelis & Co. LLC as a financial adviser on the strategic review.