ISS backs NextGen's slate in proxy contest with company founder

Nextgen Healthcare

01/10/2021 23:03

BOSTON, Oct 1 (Reuters) - Institutional Shareholder Services
on Friday recommended that NextGen Healthcare Inc  NXGN.O 
shareholders elect management's four board nominees and
eliminate cumulative voting.
    The influential proxy advisory firm is backing management
and the board instead of supporting the founder of NextGen,
Sheldon Razin, who has nominated four directors to the board.
Razin has criticized the company's poor financial returns.
    ISS said recent changes to the board and management "appear
sufficient to put the company in a stronger position to execute
its strategy to grow revenue," and added, "The dissident has not
made the case that additional change is preferable at this
time."
    NextGen last month hired healthcare information technology
veteran David Sides as its chief executive officer, three months
after his predecessor left. 
    Razin, who has served on the board since 1974, nominated two
existing board members and two additional candidates to replace
four members of the board.
    Management nominated four current board members but not
Razin. 
    Shareholders will be voting on Oct. 13. 
    

 (Reporting by Svea Herbst-Bayliss in Boston
Editing by Matthew Lewis)
 ((svea.herbst@thomsonreuters.com; +617 856 4331; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))