Financial Management Group Urges Investors to Dump Massey Board Members
Since the deadly mining blast in West Virginia last month, Massey Energy has insisted that its safety record sets the industry standard. But at least one financial risk management analyst disagrees. RiskMetrics Groups is telling its clients this week to vote against three of Massey’s sitting board members due to the company’s “disturbing” safety record, Reuters reports. All three sit on Massey’s Safety, Environmental and Public Policy Committee.
“Beyond the recent tragedy, the company’s track record of violations and fines is disturbing,” RiskMetrics said in a note to clients obtained by Reuters.
“Massey appears to take action mainly in response to issues identified by shareholders or regulatory agencies,” said the note, dated May 5. It recommended clients withhold votes for board members Richard Gabrys, Dan Moore and Baxter Phillips Jr, who are up for reelection. …
“A board that is no longer responsive to shareholders and does not provide sufficient oversight to management is less able to protect or enhance shareholder value,” it said.
Massey’s annual shareholders meeting is scheduled for May 18.