IGT urges shareholders to shun ex-CEO's director bid
Gaming supplier claims Ader Group's intentions are motivated by ex-CEO Charles Mathewson's dispute with former employer.
International Game Technology (IGT) has urged its shareholders to vote against the election of four new directors linked to its former chairman and CEO Charles Mathewson, claiming their appointment would be detrimental to the company’s prospects.
Ader Management Group, a New York-based investment manager founded in 2003 by Jason Ader, has informed the gaming supplier that it intends to nominate Jason Ader, Raymond Brooks, Charles Mathewson and Daniel Silvers for directorship.
Ader claims to own more than eight million shares of IGT common stock, or approximately 3% of total IGT shares.
However the slot machine manufacturer said yesterday that it does not support these nominations, claiming Mathewson’s motivations for directorship are the result of his “long-running dispute” with IGT since his retirement in 2003.
It instead asked shareholders to vote for the Board’s eight “highly qualified and experienced directors”, including current CEO Patti Hart.
IGT said in a statement that it “strongly believes” that the Ader Group nominees would, if elected, seek to advance an agenda that is “not in the best interests of all IGT shareholders”.
“Following Mr. Mathewson’s retirement in 2003, he has repeatedly attempted to exert influence over the Company’s operations and extract personal financial benefits at the expense of all other shareholders. In 2010, the IGT Board severed all financial ties with Mr. Mathewson,” it said.