MOVE TO AX CHICO’S DIRECTOR
A chorus of shareholder advisers has slapped women’s clothier Chico’s for its corporate governance, recommending that investors withhold support for a board member’s re-election at the struggling retailer’s annual meeting next week.
Three proxy-advisory firms sided against Chico’s director John Burden.
The beef is that Chico’s bent its own rules on conflicts of interest to keep Burden – whose son-in-law is a company executive – as an independent director.
Until recently, Burden served on the compensation committee of the Chico’s board, which has awarded CEO Scott Edmonds $25 million since 2003 despite sharp declines in the company’s profits and stock price during the past two years.
Chico’s officials couldn’t be reached for comment.
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