WisdomTree’s long-tenured board chair has lost his position following the success of a shareholder campaign from the firm’s largest investor.
The campaign stemmed from concerns over WisdomTree’s performance by shareholder ETFS Capital, which also accused the firm of failing to provide adequate management oversight.
ETFS Capital specifically criticised the composition of WisdomTree’s board, arguing directors’ lacked relevant industry experience and describing corporate governance as “abysmal.”
To address these concerns, the campaign aimed to add board members with expertise in corporate governance, capital allocation, operational matters and ETFs.
During the annual general meeting held on June 16, Frank Salerno lost his re-election bid to Tonia Pankopf, the nominee put forward by ETFS Capital.
Salerno, who had served on WisdomTree’s board for 18 years and held the position of non-executive chair since October 2019, was replaced as a result of the campaign’s success.
While Salerno’s removal was a significant development, the shareholders did not approve the other ETFS Capital nominees, Bruce Aust and Graham Tuckwell.Consequently, independent directors Shamla Naidoo and Win Neuger retained their positions on the board.
ETFS Capital emphasised that Salerno’s removal sent a strong message from stockholders, indicating the urgent need for meaningful change within the board.
However, WisdomTree defended its board composition, urging shareholders to support the re-election of WisdomTree nominees, highlighting their qualifications to oversee the company’s continued growth.
The firm also noted its ongoing efforts to refresh the board, having appointed five new, diverse, independent directors in the past two years.
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