Three days after he tried in interviews with various media outlets to explain the firing of Gildan’s founder and CEO, Glen Chamandy, the board of directors of the Montreal clothing manufacturer is addressing all shareholders directly in an open letter.
“We now know that Glen Chamandy had no intention of honoring the agreed-upon succession plan,” Gildan board representatives say in his letter published Wednesday.
The letter, signed by Gildan Chairman Donald Berg and Board Committee Chairs Maryse Bertrand, Luc Jobin and Shirley Cunningham, aims to explain what led to the “unanimous” decision by Gildan directors to remove Glenn Chamandy as CEO earlier this month.
The board says it is “disappointed” by Glen Chamandy’s attempts to disrupt Gildan’s operations “as much as possible” in order to remain CEO.
The letter highlights that Glen Chamandy had difficulty finding new ways to grow internally over the long term.
“Over the past two years, the Board’s confidence in Glen Chamandy has gradually waned as we have entrusted him with the responsibility of developing the next chapter in the company’s long-term growth strategy and attention to the development of the people under his supervision.” Has been chosen.
The Board believes it is time to consider looking for a leader who will be more successful in fulfilling these “critical responsibilities for the future.”
I would also add that the size and complexity of Gildan has increased and that the challenges and opportunities ahead require a new leader who brings new ideas and different skills.
The board says it has agreed with Glenn Chamandy on a formal three-year CEO succession plan in December 2021.
Please note that on December 10 you have chosen to check the PDG post with Vince Tyra and many others that Glenn Chamandy will be able to respect the initial receipt, so that he can save his post from the previous post. head of administration.
“The most egregious example of this is the proposal he made to the board in October that we should, within weeks, agree to pursue high-risk, multi-billion-dollar acquisitions. This would result in significant dilution that would alienate Gildan.” About its main institution, field of expertise and manufacturing.
In addition, he asked to remain as CEO for several more years to implement this plan. If the board didn’t agree to the timeline he dictated, he repeatedly told us he would exit in the short term and sell all his shares. »
The publication of this letter comes at a time when the board is trying to convince several major dissident institutional shareholders of the merits of its decision.
On Tuesday, Jarislowski-Fraser, Gildan’s largest shareholder with a 7% stake, reiterated his opposition to Glenn Chamandy’s dismissal and spoke of the management problem at Gildan. Jarislowski also denounced the recent decision to give a seat on the board to Coliseum Capital, an American investment institution that supports the board’s decision.
Browning West, another major institutional shareholder, sent another letter to the board on Wednesday. “While we recently demonstrated our confidence in Gildan by increasing our stake, the crooked board has spent the past 10 days embarking on a blatant retrenchment with a single shareholder while showing a complete lack of consideration for Gildan.” “Broad and unprecedented shareholder opposition to board decisions . Actions,” the open letter reads.
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