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Activist's proposed changes at Taubman gain proxy adviser support

Land & Buildings Investment Management LLC again gained support from Institutional Shareholder Services Inc. for its proposed changes at regional mall real estate investment trust Taubman Centers Inc.

The activist investor said the proxy adviser recommends that shareholders support the election of founder and Chief Investment Officer Jonathan Litt to Taubman's board and its proposal to eliminate the REIT's dual-class share voting structure.

Land & Buildings said, citing the proxy adviser's report, that outside shareholder perspective is needed at Taubman's board level and that replacing COO William Taubman as a director appears to be "a relatively low-cost" way to achieve that. The proxy adviser also argued that the REIT would benefit from Litt's industry knowledge, Land & Buildings noted.

Institutional Shareholder Services also supported the proposal to remove the dual-class share voting structure, arguing that the Taubman family "cannot own more than a 10 percent stake of the general partner without jeopardizing its REIT status," Land & Buildings said, quoting the proxy adviser's report.

Taubman earlier called on its shareholders to reject the activist's proposal, viewing it as a misalignment of voting and economic interests, and recommended against Litt's election, citing his lack of "operational retail experience."