Independent Report Sharply Criticizes Current Management
Recommends 'Do Not Vote' For Any of the Company's Nominees
TORONTO, June 18 /PRNewswire/ -- The Concerned Shareholders of Biovail Corporation (NYSE: BVF)(TSX: BVF) said today that they welcomed a report by Glass Lewis & Co., which sharply criticized the incumbent board and recommended 'Do Not Vote' for any of the company's nominees.
Glass Lewis recommended a vote FOR two of the Concerned Shareholders nominees, Joseph J. Krivulka and Laurence W. Zeifman. It recommended withholding votes from the other eight nominees on the Concerned Shareholders' slate.
The Glass Lewis report took issue with several actions by the current board, particularly its executive appointments and compensation packages.
"While the board should be seeking to put its troubled history in the past, it has instead appointed its former CEO as chairman and a former member of an audit committee which oversaw significant restatements as its new CEO," the report says. "We believe that shareholders could benefit from the addition of new independent voices on the board with appropriate subject matter and industry expertise."
The Glass Lewis report called the appointment of Biovail's CEO, William Wells, "a curious choice at best," as well as "inappropriate from a corporate governance perspective." It concludes: "At the very least such an appointment could only further serve to damage the Company's already bruised public image."
Glass Lewis also expressed disapproval of executive compensation
arrangements made by the incumbent board. It notes that Mr. Wells chaired
the compensation and nominating committees, and that the retiring CEO,
Douglas Squires, was awarded a
|SOURCE Bruce Brydon|
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