Schulman Loses Proxy Battle

At its annual meeting on Jan. 10, A. Schulman's shareholders rejected management entreaties and elected two nominees backed by activist investor Ramius Capital Group to the company's board of directors. A Ramius nominee will now occupy the spot the firm had expected that its new CEO, Joseph M. Gingo, would fill. Gingo says he "looks forward to working with all directors." Ramius, which owns a 7.6% stake in Schulman, contends that the plastic compounder has a long history of deteriorating operating performance. It encouraged shareholders to elect its nominees to ensure that management remains accountable and that Schulman continues to explore strategic alternatives, including a possible sale of the company.