(Corrects to say ISS only backs two out of four nominations by Cation Capital; Corrects Crescent Capital to Crescent Point in last paragraph)
April 19 (Reuters) - Proxy advisory firm Institutional Shareholder Services on Thursday recommended Crescent Point Energy Corp shareholders vote for activist investor Cation Capital’s two nominations to the oil and gas producer’s board.
Cation Capital, a private investment firm led by the former deputy head of global oil and gas at Macquarie Group, last week disclosed its intention to nominate four candidates to Calgary-based Crescent’s board at a shareholders meeting next month.
ISS recommended shareholders to vote for candidates Dallas Howe and Herbert Pinder nominated by Cation, and asked to vote ‘withhold’ for the rest two nominations.
ISS said Cation, which owns a 0.3 percent stake in Crescent, has made a “reasonably compelling case” for change at the board, including to enhance profitability and to ensure proper alignment of executive compensation.
“Although a number of positive developments were undertaken by the company during the last year they seemed to be overshadowed by significant underperformance that was not reflected in the CEO’s total compensation,” ISS said.
Crescent Point did not immediately respond to a request for comment.
Reporting by Munsif Vengattil in Bengaluru; Editing by Cynthia Osterman