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Hedge fund AREX Capital Management announced Friday that proxy advisory firm Institutional Shareholder Services (ISS) has recommended shareholders of Enhabit (NYSE:EHAB) vote for its three board nominees at the upcoming annual meeting.
New York-based AREX Capital has been pushing for seven board seats at the home health and hospice provider, in which it has about 5% stake.
Enhabit (EHAB) has lost more than 60% since making its public debut in 2022 as a spinoff of post-acute healthcare services provider Encompass Health (EHC),
“We are pleased that a leading independent proxy advisory firm has recognized the lack of home health and hospice industry expertise on Enhabit’s Board,” AREX said.
Meanwhile, Enhabit (EHAB) said it welcomed ISS’ decision to recommend a majority of its nominees to the board.
However, it disagreed with suggestions to remove current directors Gregory Rush, Erin Hoeflinger, and Susan La Monica, noting that “critical experience would be lost by replacing these directors with AREX’s nominees.”