Matthews International to Enhance Governance and Board Structure
Matthews International Moves Towards Enhanced Governance
Matthews International Corporation is taking significant strides to improve its governance structure and board composition. The company is committed to enhancing long-term shareholder value through various governance updates.
Board Chair Transition Announcement
The company is planning an orderly transition for its Board Chair. The current Board Chair, Alvaro Garcia-Tunon, will retire at the Annual Meeting of Shareholders in 2026, paving the way for a new independent Board Chair to be appointed shortly thereafter.
Joseph C. Bartolacci, President and CEO, expressed gratitude for Garcia-Tunon’s leadership, emphasizing the importance of a smooth transition. His contributions have helped shape a board focused on sustainable value creation.
Appointment of New Independent Director
In its ongoing efforts to refresh its board, Matthews is closely working to appoint a new independent director with extensive experience in battery technologies and electric vehicles. This director will start their role right after the existing director Gregory S. Babe steps down, marking a significant evolution in the board's expertise.
This change is part of a broader strategy—since 2020, Matthews has welcomed five new independent directors, demonstrating a clear commitment to diversifying perspectives on the board.
Governance Enhancements Planned
As part of its governance enhancements, Matthews will propose changes at the 2026 Annual Meeting of Shareholders to amend its Articles of Incorporation and Bylaws, which will include:
- Declassifying the Board of Directors to enable annual elections, ensuring accountability and responsiveness to shareholders.
- Switching to majority voting for director elections, replacing the current plurality system.
- Eliminating supermajority voting requirements for some amendments to streamline decision-making processes.
Garcia-Tunon noted the company’s eagerness to implement changes based on shareholder feedback, reinforcing transparency in governance practices aimed at delivering long-term value.
Strategic Positioning for Shareholder Value
Under the guidance of an experienced board and management team, Matthews has strategically diversified its offerings, building a robust global presence. The company focuses on disciplined capital allocation and value creation, evidenced through:
- The recent sale of SGK Brand Solutions, which provided an upfront payment of $350 million and a 40% equity stake in a new joint venture, promoting future synergy-driven growth.
- An intent to divest remaining operations in the SGK Brand Solutions for $50 million, streamlining focus on its core strengths.
- Anticipated announcements throughout the fiscal year regarding further initiatives aimed at enhancing shareholder value.
Additionally, Matthews has received affirmation that it can market its Dry Battery Electrode (DBE) technology to a broader range of customers beyond Tesla. This positions the company to tap into the expanding electric vehicle market, catering to the needs of global battery manufacturers with innovative solutions.
About Matthews International Corporation
Matthews International Corporation stands as a leading global provider of memorialization products and industrial technologies, driving significant value across its diverse segments. The Memorialization segment serves clients in the cemetery and funeral home industry, offering a full array of products. The Industrial Technologies segment specializes in high-tech solutions for energy storage and product identification, catering to numerous industries. The SGK Brand Solutions segment excels in providing creative packaging solutions and enriching brand experiences.
With a dedicated workforce of over 11,000 employees across more than 30 countries, Matthews is committed to maintaining the highest standards of quality in all its offerings.
Frequently Asked Questions
What governance changes is Matthews International implementing?
Matthews International is declassifying its Board, changing voting standards for director elections, and eliminating supermajority voting requirements.
Who is taking over the Board Chair position?
The current Board Chair, Alvaro Garcia-Tunon, will retire, and a new independent Board Chair will be appointed before the 2026 Annual Meeting.
What experience will the new director bring?
The new director will have significant expertise in battery technology and electric vehicle solutions, addressing the growing market demand.
How many new independent directors has Matthews added since 2020?
Matthews has added five new independent directors, reinforcing its commitment to diversifying board expertise.
What other strategies is Matthews focusing on to enhance shareholder value?
Matthews is engaging in several divestments and expects to announce additional strategic initiatives to foster long-term shareholder growth.
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