Quality Systems Inc. claimed a small win last week in its ongoing proxy fight with a major shareholder.
The Irvine-based medical software maker said Institutional Shareholder Services Inc., an influential shareholder adviser, recommended voting for all eight of management’s director nominees and proposals.
Institutional Shareholder Services, in a release, said it didn’t believe the concerns of Ahmed Hussein, an Egyptian businessman and investor who owns some 18% of Quality, warranted the election of a dissident slate to the board. Quality’s shareholder meeting is set for Wednesday.
The dispute between Hussein and Sheldon Razin, Quality’s chairman, cofounder and other dominant owner, appears to be over compensation for directors and management.
Razin and his slate, including Chief Executive Louis Silverman, believe compensation has been lean and that corporate governance principles Hussein established upon becoming a Quality director in 1999 are too harsh.
,Vita Reed
