CHICAGO -- Paul Toback is still in as Bally Total Fitness CEO and chairman, but the Bally board will see some new faces, according to preliminary results of the election at the Bally shareholder meeting today in Chicago.
Bally said that based on preliminary results in its contested election, the Liberation Investments' shareholder proposal seeking the removal of Toback failed to receive the 75 percent of shareholder votes required for passage. Bally also reported that it appears that Charles Burdick, Barry Elson and Don Kornstein received sufficient votes to be elected to Bally's board of directors. Final results will be announced in the next two weeks after completion of the vote tabulation by IVS Associates, Inc., the independent inspectors of the election.
The vote means that Eric Langshur, a board nominee that Bally supported, would not be a member of the new board. Burdick, Elson and Kornstein were all nominated by Pardus Capital Management, Bally's largest shareholder.
Commenting on the election, John W. Rogers Jr., lead director of Bally's board, said, "While a number of forces and agendas appear to have been at work, it is clear from today's vote that Bally's investors intended to send a strong message about the importance of board leadership at the company. We hear that message, and welcome our three new independent directors to constructively work with Bally's independent board and management in helping lead the company's operational turnaround and strategic alternative process to deliver enhanced value for shareholders."
Rogers continued, "We continue to maintain unanimous support for and confidence in Paul Toback and his management team. We believe it is in the best interest of all shareholders to move forward under Bally's current leadership."