According to Reuters, fund adviser CtW Investment group recommended that Urban Outfitters, Inc. (NASDAQ: URBN) investors should vote against two directors, stating that the board’s “extreme insularity” aided in the company’s poor performance.
The clothing retailer reported falling profits within the last three years as consumers are purchasing clothing online from brands such as Zara and H&M. CtW urges investors to vote against Robert Strouse and Harry Cherken Jr, who are members of its nominating and governance committee that are up for re-election on May 23rd.
In a letter to investors, Executive Director Dieter Waizenegger of CtW said, “For a company that is so reliant on global sourcing and focused on women, it is surprising that the board consists of largely Caucasian males with law and finance backgrounds,” the letter said.
CtW has also accused Urban Outfitters of being “run as a family business,” noting the appointment of David Hayne, the CEO’s son as the company’s first chief digital officer last in 2016.