Proxy adviser Institutional Shareholder Services urged shareholders to vote against 10 of Mylan NV's 11 director nominees, saying the board mismanaged the controversy involving company's EpiPen treatment, Reuters reported June 12.
Ahead of company's June 22 shareholder meeting, Institutional Shareholder Services recommended voting against nominees including CEO Heather Bresch, President Rajiv Malik and Chairman Robert Coury. The proxy firm also advised investors to vote against executive pay packages.
Institutional Shareholder Services said the shareholder value had eroded as the board failed to adequately manage the situation. No candidates have been named as replacements, Reuters reported.
The company is confident its shareholders recognize that the board has overseen "a period of strong and sustainable long-term growth," Nina Devlin, Mylan's spokeswoman, said in a statement. Devlin added that the recommendation to remove the board and leave the company without any leadership is not in shareholders' best interests, Reuters reported.
Glass Lewis & Co., another proxy firm, also advised Mylan shareholders against voting for the chairman's pay, and against three of the directors on the compensation committee, according to Reuters.
The recommendations come after a group of institutional investors opposed the re-election of Coury and five other directors due to a disagreement over high executive pay.