Published on: June 3, 2026, at 08:37 AM.
Updated on: June 3, 2026, at 08:37 AM.
- The labor union is urging Penn shareholders to back the declassification of the board
- Two leading proxy advisory firms support the union’s initiative
- Penn’s annual meeting is set for June 16
A labor union is advocating for shareholder support to declassify the board elections of Penn Entertainment (NASDAQ: PENN), receiving endorsements from two prominent proxy advisory firms.
Unite Here, representing the labor force advocating for greater board transparency at the regional casino operator, announced today that Glass Lewis & Co. and Institutional Shareholder Services (ISS) are advising Penn investors to vote in favor of the declassification proposal from the union.
These endorsements affirm what shareholders have expressed for years: that annual director elections promote accountability and are a critical aspect of good governance,” stated Michael Hachey, Unite Here’s director of gaming industry research.
The union introduced its proposal for declassification of Penn’s board in April, highlighting that investors had previously approved a similar measure in 2010, which the company never acted upon. Unite Here is additionally advocating for the implementation of annual elections for directors. The support from Glass Lewis and ISS comes just ahead of the upcoming annual meeting on June 16.
Unite Here’s Track Record with Board Transparency Initiatives
Unite Here has a history of pushing for improved board transparency. In 2019, the union sought similar changes at Caesars Entertainment (NASDAQ: CZR), proposing five non-binding initiatives, including a majority voting requirement. Three years later, Caesars shifted to majority voting for uncontested board elections.
The union highlights that competitors of Penn, like Boyd Gaming (NYSE: BYD), Caesars, and MGM Resorts International (NYSE: MGM), conduct annual elections for their board members. This undermines Penn’s argument against annual votes in the industry, which is known for its stringent regulations. Unite Here emphasizes that annual director elections are critical to institutional investors and signify strong corporate governance.
“Annual director elections are recognized as a best practice in governance among public firms and institutional stakeholders,” asserts the union. “Data referenced in Unite Here’s shareholder communications indicates that declassification proposals saw an average support of 77.9% in 2025 and achieved an 86% passing rate.”
Penn, recognized as the largest regional casino operator by venue numbers, appointed two new members to its board last year, followed by three additional directors in February.
Proxy Advisors Familiarity with Penn
Both Glass Lewis and ISS are well-acquainted with Penn. During the gaming company’s 2025 conflict with hedge fund HG Vora, ISS backed the investor’s efforts to place three candidates on Penn’s board, with Egan-Jones also lending support.
In a contrasting stance, Glass Lewis endorsed the “White Card” plan, which allowed two of Vora’s recommended candidates to secure board positions.
Unite Here is convinced that transitioning to annual director elections would act as a catalyst for long-term shareholder value creation, improving accountability and reducing entrenchment risks, while aligning PENN with current governance norms and shareholder expectations.