Unite Here, a labor union active in the gaming sector, is rallying Penn Entertainment (NASDAQ: PENN) shareholders to support a proposal to declassify its board. The movement gained momentum as two major proxy advisory firms, Glass Lewis & Co. and Institutional Shareholder Services (ISS), recommended that shareholders vote in favor of the union’s initiative. The vote is set for Penn’s annual meeting on June 16.
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Proxy Advisories Align with Unite Here
According to a statement issued by Unite Here, both Glass Lewis and ISS have publicly supported the declassification of Penn’s board. But michael Hachey, the director of gaming industry research for Unite Here, emphasized that such recommendations align with shareholders’ longstanding calls for annual director elections to bolster board accountability. “Annual director elections are a governance best practice,” he noted. The current proposal isn’t Penn’s first encounter with calls for declassification. A similar proposal was approved by investors in 2010, yet Penn took no action. The union also seeks to ensure that director elections occur annually.
Success with Previous Activism
Unite Here has a track record of advocating for board transparency across the sector. Back in 2019, the union successfully pushed Caesars Entertainment (NASDAQ: CZR) towards majority votes in board elections. By 2022, Caesars shifted to majority voting for uncontested elections. But the union cites Boyd Gaming (NYSE: BYD), Caesars, and MGM Resorts International (NYSE: MGM) as examples of companies adopting annual board member elections as industry best practices. Still, unite Here underscores that institutional investors consider annual director elections a sign of strong governance. “Annual director elections are widely recognized as a governance best practice among public companies,” the union states. Citing 2025 data, the union reported an average of 77.9% shareholder support for declassification proposals, with an 86% success rate.
Glass Lewis and ISS’s History with Penn
Penn Entertainment is no stranger to proxy battles. During a 2025 dispute with hedge fund HG Vora, ISS threw its support behind an investor proposal to introduce three candidates to Penn’s board, while Glass Lewis backed a competing plan resulting in two of Vora’s nominees being elected. Egan-Jones, another advisory firm, also endorsed the HG Vora-backed nominations. Unite Here argues that annual director elections could be a catalyst for enhanced long-term shareholder value and reduce entrenchment risks. For Penn, once the largest regional casino operator in terms of venue count, aligning its governance practices with industry standards could prove crucial.
Upcoming Shareholder Meeting
Shareholders will cast their votes on June 16 at Penn Entertainment’s annual meeting. The outcome of this vote could signal a shift in how Penn approaches corporate governance, potentially impacting its board’s structure. Whether the proposal leads to immediate changes remains to be seen.
Eri Gaitu leads the news desk at Best in Slot, tracking breaking developments across the gambling world in real time. From exclusive bonus offers and casino launches to licensing updates and regulatory shifts, Eri ensures readers are always first to know about the changes that matter to their gaming experience.
