STAMFORD, Conn.–(Company WIRE)–These days Land & Buildings Financial investment Management LLC (collectively with its affiliates, “Land & Buildings”), a shareholder of Community Storage (“PSA” or the “Company”) (NYSE: PSA), has sent an open up letter notifying PSA shareholders it intends to vote from the Company’s proposal to remove cumulative voting at the 2021 Yearly Meeting of Shareholders:
Expensive Fellow Public Storage Shareholders:
We are witnessing additional of the exact board entrenchment antics at Public Storage. In the PSA proxy the Company is asking shareholders to approve the elimination of cumulative voting, a significant setback for shareholder rights. Taken in blend with insiders managing 15% of the vote and a straightforward majority vote normal, we believe the Board is using advantage of the company machinery to profit the insiders at the cost of shareholders.
Introducing insult to harm, the Board not only refuses to forever decide out of MUTA – that means they can stagger the Board on a whim with no shareholder acceptance – the Organization also restricts possession to no far more than 3% of superb popular shares though the Hughes family is permitted to individual up to 36%.
At Public Storage, which has a record of lousy governance, like associated bash transactions with the Hughes relatives and 4 non-unbiased trustees, cumulative voting is an correct security for shareholders. Cumulative voting supplies buyers with a authentic mechanism to hold the Board and management accountable to all shareholders.
The takeover protections afforded by MUTA, a prolonged historical past of inadequate company governance, and the outsized affect of insiders implies cumulative voting at PSA is not a luxurious, but a necessity. Elimination of cumulative voting harms accountability of the Board to shareholders and preserves insider affect.
We will be voting in opposition to the proposal at the Yearly Conference and encourage other shareholders to take into account irrespective of whether to be part of us in order to preserve this critical proper at Public Storage.
Founder & CIO
Land & Properties Investment Administration, LLC