VANCOUVER, WA – Three voting advisory services have recommended that Nautilus Inc. shareholders vote against the full proposal by Sherborne Investors LP to oust four of Nautilus’ seven board members at the company’s shareholder meeting on Dec. 18 in Vancouver, WA, according to Nautilus.
However, Sherborne Investors issued a statement saying that one of the groups, ISS Governance Services, recommended replacing board members Peter Allen and Donald Keeble with Sherborne representatives Gerard Eastman and Michael Stein. Sherborne, headed by Edward Bramson, is a 23.5 percent shareholder in Nautilus. None of the advisory services recommended that shareholders vote in Bramson or Richard Horn, the other two Sherborne nominees.
The three advisory firms are ISS Governance Services, Glass Lewis & Co. and Proxy Governance Inc. Although the firms say that Nautilus’ financial performance has been disappointing, the Nautilus board is implementing plans to move the company forward while Sherborne has not offered a plan.
On Nautilus’ retail side, the company is recalling its Bowflex Ultimate 2 Home Gyms and is expanding its partnership with Dick’s Sporting Goods. The retailer, which sells three to four Nautilus products, will expand that number to eight to 10 next year, although Nautilus management would not name the products to be added. In the meantime, Nautilus voluntarily recalled the Bowflex Ultimate 2 Home Gyms sold at retailers or through direct sales from June 2005 to August 2007. The product’s fasteners can come loose, which can cause resistance rods to separate and strike users or bystanders, according to the recall alert on the U.S. Consumer Product Safety Commission Web site.