PENN Entertainment Shakes Up Board with Fresh Nominees

PENN Entertainment announced big changes to its Board of Directors after talks with HG Vora Capital Management, a key shareholder that has criticized the company’s recent strategy. As part of this update, Johnny Hartnett and Carlos Ruisanchez will run for election at the 2025 Annual Meeting of Shareholders.

PENN Responds to HG Vora Criticism with Board Shake Up

The company also shared that longtime director Ron Naples has quit, while Barbara Shattuck Kohn and Saul Reibstein will not run again next year. PENN’s Board now has eight members, with most of them considered independent.

The nominations follow HG Vora‘s expression of criticism of PENN’s leadership. HG Vora owns just under 5% of PENN’s shares. The hedge fund criticized PENN’s investments in online sports betting. HG Vora suggested three candidates, but PENN will put forward Hartnett and Ruisanchez. PENN did not include the third nominee, former CFO William Clifford.

PENN and HG Vora did not sign a formal agreement. PENN said it wanted to avoid an expensive and distracting proxy fight that might upset investors even more. PENN representatives stressed their goal to make the most of growth opportunities in the Interactive division. They described the new nominees as experts in both digital and retail gaming areas.

New Board Members Aim to Steer PENN Toward Recovery After Major Losses

Hartnett, who just joined Superbet Group’s board after working as its CEO, gets credit for leading big tech upgrades and market growth plans. Ruisanchez brings years of leadership know-how from his time at Pinnacle Entertainment and Bear Stearns, and now runs investment and hospitality projects through Sorelle Capital.

Even without a formal deal with HG Vora, PENN‘s choice to nominate two candidates the hedge fund likes shows they are listening to shareholder concerns. Market experts say this move could help calm investors after the stock’s ups and downs.

Penn Entertainment’s stock has taken a big hit, dropping more than 80% from its peak of $136.47 in March 2021. The company runs casinos and racetracks in 20 states and has tried its hand at online gaming, but these moves have not paid off as hoped. Investors such as HG Vora Capital have said that Penn has not managed its finances well. They point to costly mistakes such as buying Barstool Sports for $550 million to sell it back for $1, and spending $1.5 billion on an ESPN branding deal.

PENN Entertainment runs more than 40 casinos and racetracks across North America and manages ESPN BET, its online sports betting platform. The company’s bosses think that combining gaming properties and digital innovation has a big future potential, and they expect the new Board to speed up plans to create more value for shareholders.