{"id":1013796,"date":"2026-10-26T19:18:06","date_gmt":"2026-10-26T23:18:06","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/all-three-leading-independent-proxy-advisory-firms-agree-leadership-change-is-desperately-needed-at-ethan-allen\/"},"modified":"2026-10-26T19:18:06","modified_gmt":"2026-10-26T23:18:06","slug":"all-three-leading-independent-proxy-advisory-firms-agree-leadership-change-is-desperately-needed-at-ethan-allen","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/all-three-leading-independent-proxy-advisory-firms-agree-leadership-change-is-desperately-needed-at-ethan-allen\/","title":{"rendered":"All Three Leading Independent Proxy Advisory Firms Agree Leadership Change Is Desperately Needed at Ethan Allen"},"content":{"rendered":"

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All Three Leading Independent Proxy Advisory Firms Agree Leadership Change Is Desperately Needed at Ethan Allen<\/b><\/p>\n

ISS Joins Glass Lewis and Egan-Jones in Recommending the Removal of Chairman and CEO Farooq Kathwari and Lead Independent Director David Sable, Citing Concerns About the Incumbent Board\u2019s Independence and Deference to Mr. Kathwari<\/i><\/b><\/p>\n

Despite These Findings and Persistent Share Price and Operating Underperformance, ISS\u2019 Recommendation Would Leave Three Incumbent Directors in Control of the Board Tasked with Overseeing Ethan Allen\u2019s Next Chapter<\/i><\/b><\/p>\n

Mr. Bergeron Urges Shareholders to Vote the WHITE Proxy Card \u201cFOR\u201d ALL Five of His Nominees<\/i><\/b><\/p>\n

PARK CITY, Utah–(BUSINESS WIRE<\/a>)–
\nDoug Bergeron, a significant shareholder of Ethan Allen Interiors Inc. (\u201cEthan Allen\u201d or the \u201cCompany\u201d) (NYSE: ETD) with beneficial ownership, collectively with his affiliates and associates, of approximately 5.2% of Ethan Allen\u2019s outstanding common stock, today announced that leading independent proxy advisory firm Institutional Shareholder Services Inc. (\u201cISS\u201d) has joined Glass, Lewis & Co. (\u201cGlass Lewis\u201d) and Egan-Jones Proxy Services (\u201cEgan-Jones\u201d) in recognizing the need for immediate, meaningful change to Ethan Allen\u2019s Board of Directors (the \u201cBoard\u201d) at the Company\u2019s 2026 Annual Meeting of Stockholders (the \u201cAnnual Meeting\u201d) on November 4, 2026.<\/p>\n

\nMr. Bergeron commented, \u201cAll three leading proxy advisory firms have recommended removing Chairman and CEO Farooq Kathwari and lead independent director David Sable \u2013 a powerful repudiation of the leadership and governance structure that has presided over years of underperformance, failed to hold management accountable, and left Ethan Allen ill-prepared for its most consequential leadership transition as a public company.<\/p>\n

\n\u201cReplacing just two directors, however, is not enough to address the extensive failures identified by ISS. Meaningful change cannot be achieved if the directors responsible for these failures retain majority control. ISS\u2019 recommended outcome would leave three incumbent directors in control of the five-member Board, preserving the very leadership that abetted Mr. Kathwari\u2019s failed strategy and willfully participated in the consequential governance failures identified by all three proxy advisories. In short, these directors bear responsibility for Ethan Allen\u2019s decline and have failed to fulfill their fiduciary responsibilities.<\/p>\n

\n\u201cWorse yet, two of the directors who would remain in their seats under ISS\u2019 recommendation, Maria Eugenia Casar and Cynthia Ekberg Tsai, chair the Board\u2019s Audit Committee and Corporate Governance, Nominations and Sustainability Committee, respectively. The third, Tara Stacom, also serves on the Corporate Governance, Nominations and Sustainability Committee and joined the Board during the 2015 proxy contest, purportedly to help address the Company\u2019s longstanding underperformance.<\/p>\n

\n\u201cIn other words, these are the individuals who approved Ethan Allen\u2019s rash $3.00 per share special cash dividend over the course of a weekend \u2013 draining funds that could have been reinvested in growth. They also willfully decided to hide the ball from shareholders by withholding first quarter financial results until after the 2026 Annual Meeting and failed to undertake meaningful, proactive succession planning until faced with a contested election. ISS has questioned whether shareholders can trust this Board, and we agree. We do not see how Ethan Allen can deliver improved performance while the same incumbent directors remain in control. That is why we are asking shareholders to give us a mandate to effect this change by voting for all five of our nominees.<\/p>\n

\n\u201cOur slate of five highly qualified director nominees has a singular objective: to restore profitable growth and create enduring value for Ethan Allen shareholders. Together, they bring the complementary leadership, operational, retail and digital expertise necessary to revitalize this iconic American brand, oversee a truly independent CEO search and execute a credible plan for the future. The choice on November 4 is not between continuity and disruption. It is between perpetuating the failures of the past and electing a Board with the experience, independence and conviction to renew Ethan Allen and deliver the lasting value shareholders deserve.\u201d<\/p>\n

In commenting on Ethan Allen\u2019s prolonged underperformance, deteriorating operating results and failure to adapt its strategy to an evolving industry, ISS stated:<\/b>*<\/p>\n