HomeStreet shareholder Blue Lion Capital comments on Egan-Jones recommendation
HomeStreet stockowners Blue Lion Capital and its affiliates, the beneficial owners of 6.1% of the stock of HomeStreet, announced that independent proxy vote advisory firm Egan-Jones has recommended that HomeStreet shareholders vote on Blue Lion Capital's Blue proxy card "against" HomeStreet's long-standing directors Scott Boggs and Douglas Smith at this year's Annual Meeting. Egan-Jones issued a 22-page report in which it concluded that "...there is a poor oversight and lack of accountability in the part of Messrs. Scott M. Boggs and Douglas I. Smith as members of the Audit Committee which involved HomeStreet in an accounting malpractice and sanction by the SEC. (...) We believe that voting AGAINST Messrs. Boggs and Smith will send a clear signal that change is warranted in the company, both in the boardroom and in terms of financial performance. In our view, the company should re-assess its strategies to maximize HomeStreet's potential and impede its underperformance versus its peers. (...) In our view, the company should strengthen its corporate governance practices to acknowledge accountability. We recommend the company declassify its Board to allow shareholders to make necessary changes in board composition annually and to separate the roles of Chairman and CEO due to the presence of the inherent conflict of interest."