An activist investment firm filed a preliminary proxy with Imation Corp. shareholders and regulators Thursday, alleging mismanagement and outlining why it wants to nominate three candidates to the data storage company's board and slash executive and director pay.
The filing seeks the support of shareholders of Oakdale-based Imation against the wishes of Imation's management. It is the second run at a Minnesota company by the Clinton Group, a New York investment firm with $1.5 billion in assets under management.
Last year, it won control of the board of ValueVision Media Inc. of Eden Prairie in a similar proxy battle.
In December, Clinton officials informed Imation's board that they want to choose three Imation board members this spring, when three of six board members are up for re-election.
Thursday's filing made Clinton's December salvo official and set the stage for a new proxy fight at Imation's annual meeting on May 20.
In its filing, the Clinton Group said "We believe there are systemic issues with the company's leadership today. In the board of directors' room the company's fiduciaries appear to believe they are truly doing what is right for shareholders, although financial results and stock price performance would indicate other wise."
The SEC filing cited Imation's financial losses, stock declines and struggling acquisitions. It alleged excessive compensation and mismanagement and proposed slashing board members' total fee and stock compensation to $50,000 a year, down from last year's average of $350,000.
Clinton senior portfolio manager Joseph De Perio told the Star Tribune in an interview, "The board's views on compensation … would suggest that they believe they are doing a great job, which we believe is diametrically opposed to any data we have examined on historical stock price performance and financial performance."