UNITE HERE Urges Shareholders to Support PENN Entertainment Board Declassification Proposal
UNITE HERE urges shareholders to vote FOR the proposal to declassify the Board of Directors at PENN Entertainment and transition to annual elections for all directors at the AGM on June 16, 2026. The firm said, "PENN shareholders already supported declassification in 2010, yet the Board has not implemented that outcome. In the years since, governance standards have moved in greater favor of annual elections as investor expectations have become clearer. In 2025, declassification proposals were reported to have seen average shareholder support of 77.9%, resulting in a passage rate of 86% across 14 proposals. Today, maintaining a classified structure places PENN increasingly out of step with shareholder preference. Annual elections would: Support long-term value creation by reinforcing confidence in Board oversight Enhance accountability and responsiveness during a period of disruption in the traditional gaming industry created by prediction markets, the growth of internet gaming, and grey market activities such as skill-based games and sweepstakes gambling Reduce entrenchment risk and align PENN with governance norms embraced by leading industry peers Importantly, the proposal is precatory. The Board retains full discretion to determine whether to declassify, and if it does so, to proceed in a manner that is consistent with the law and all applicable gaming regulatory requirements...The proposal to declassify the Board is simple, beneficial for shareholders, and consistent with the practices of gaming industry peers that maintain annual elections and operate in the highly regulated gaming industry. After more than a decade since shareholders first supported declassification, it is time to align PENN's governance with modern standards of accountability."
