Shareholders Re-Elect All 12 Tegna Directors

The defeat of a proposal by Standard General’s Soo Kim is a victory for Tegna Chairman Howard Elias and CEO David Lougee and followed announcement of a 7 cents a share dividend to shareholders earlier this morning.

Tegna announced this morning that current management led by Chairman Howard Elias and CEO David Lougee won its proxy battle with hedge fund investor Soo Kim as shareholders reelected the entire slate of 12 board directors recommended by management.

The declaration of victory was based on the preliminary vote count of Tegna’s proxy solicitor.

Kim, who had earlier rolled up Young and LIN into Media General before selling the combined companies to Nexstar, had challenged Tegna management, campaigning for votes to place himself and three others on the board.

He alleged that under the guidance of Lougee and Elias, Tegna was badly underperforming its industry peers in various operational measures and total shareholder return.

That Tegna would prevail appeared increasingly likely over the past two weeks as two proxy advisers — neutral analysts — recommended the management slate and another said that shareholders should elect just one of the Kim’s four candidates.

Tegna may have sealed the deal by declaring a 7 cents a share dividend this morning.


“We are grateful that our shareholders have supported our highly qualified and experienced directors,” Elias said in a statement. “This outcome is a validation of our board’s ongoing commitment to driving value for all shareholders. The board has benefitted from the opportunity to speak directly with shareholders about Tegna’s strategy and performance and to hear their feedback and perspective.

“We appreciate that Standard General has a large investment in Tegna and look forward to moving past the proxy contest and having a constructive dialogue with Soo Kim going forward.”

Added Lougee: “We are pleased by the support Tegna shareholders have shown for our proven strategy to deliver growth and shareholder value. We appreciate the confidence our investors have placed in our talented team to navigate the current crisis and continue Tegna’s critical role of providing factual and reliable information to our local communities at a time when it has never been more important.”

Comments (4)

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Hopeyoumakeit says:

April 30, 2020 at 10:19 am

ok so furloughing employees and cutting mgmt. pay to finance a 7% dividend is supposed to be viewed as sound management?. It LOOKS like Lougee is trying to keep his stock price propped up since his total debt could be as high as 150% of his market value. ?

[email protected] says:

April 30, 2020 at 10:50 am

Tegna’s not out of the woods yet.
Even with political, every single one of its stations has been under-performing for the past several quarters (with the exception of WBIR Knoxville).
Cox was in the same position when Apollo came along… even if all of the Cox stations were under-performing , WSB carried them all on its own back.
Tegna’s prime for the picking.

Futurist says:

April 30, 2020 at 2:05 pm

Sorry you financial mavens ran into a company you couldn’t strip. Congratulations, Tegna.

[email protected] says:

April 30, 2020 at 11:56 pm

TEGNA wins and Soo Kim loses big time as he didn’t get anyone on the board.