Mac-Gray, Fairview garner support of separate proxy advisory firms

By Lisa Kerner

Charlotte, N.C., April 27 - Glass, Lewis & Co., LLC recommended that shareholders of Mac-Gray Corp. vote for the company's director nominees - chief executive officer Stewart G. MacDonald and Christopher T. Jenny - at the special meeting on May 8, the company announced on Monday.

MacDonald is the company's largest shareholder, and Jenny is a senior partner with hedge fund Parthenon Group.

Another proxy advisory firm, RiskMetrics Group/ISS, recommended that Mac-Gary shareholders vote for Fairview Capital Investment Management, LLC's independent director nominees, Scott Clark and Bruce Ginsberg, a Fairview Capital news release said.

Clark is vice president, member and portfolio manager with Fairview Capital, and Ginsberg is president, CEO and a director of MooBella LLC.

According to Mac-Gray, Glass Lewis' report said, "The dissident's plan does not appear to offer any substantial changes or enhancements to the board's existing plan. Furthermore, we do not believe the dissident nominees have the requisite industry or public company board experience required to participate on the Mac-Gray board."

Thomas E. Bullock, chair of Mac-Gray's governance and nominating committee said, "Glass Lewis believes 'the board and management have a strategic plan in place to enhance margins and drive earnings growth.'"

RiskMetrics said in its report, "In view of the persistent share price underperformance, lack of convincing evidence that the expansion strategy has lead to a trend improvement in financial metrics, the positive market reaction to dissident actions, we believe change is warranted," according to Fairview.

"This recommendation reaffirms our strong belief that Mac-Gray stockholders need a fresh voice in the boardroom," Andrew Mathieson, Fairview's founder and president, said in the release.

As previously reported, a third proxy advisory firm, Proxy Governance, Inc., recommended that Mac-Gray shareholders support the company's director nominees.

Proxy Governance, according to Mac-Gray, said in its report, "While we believe the company's board could use a stronger shareholder perspective - with increased focus on earnings, the stock price and governance issues - we are not convinced that unseating the CEO or the director on the board with perhaps the most capital markets expertise is either the best means to achieving that end or warranted at this time."

Mac-Gray is a Waltham, Mass.-based laundry facilities management contractor.

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