Ron Burkle and Leonard Riggio have been locked in a heated battle over who should have the three seats on the Barnes & Noble board. Today Institutional Shareholder Services (ISS), a powerful proxy advisory firm has announced it agrees with Burkle’s opinions. Burkle’s board would consist of himself, Stephen Bollenbach, the former chief executive of Hilton Hotels and Michael S. McQuary.
Should Burkle’s desires come to fruition, Riggio would lose his seat. ISS feels Burkle is correct in his claim that the Barnes & Noble’s board has been too closely tied to Riggio which gives rise to concerns about the Riggio family’s involvement with the board. This news will greatly affect how the Barnes & Noble shareholders will vote. Large institutional investors are often mandated to vote according to recommendations made by ISS. The shareholders will convene for their annual meeting in one week.
According to the New York Times: “Still, having ISS’s backing could provide a big boost to Mr. Burkle, who has argued for independent directors to be seated on Barnes & Noble’s board to counter what he says is the powerful influence of Mr. Riggio. ‘I want someone in there who doesn’t say, ‘That’s the most amazing thing I ever heard’ every time Len opens his mouth,’ Mr. Burkle told DealBook in a phone interview last week.”