CtW Welcomes RiskMetrics/ISS Recommendation Against Massey Energy Directors

WASHINGTON, May 5 /PRNewswire/ -- The CtW Investment Group welcomed the announcement today that leading independent proxy advisor RiskMetrics/ISS Governance Services recommended that their clients "Withhold" votes for Massey Energy Company (NYSE: MEE) board members Richard Gabrys, Dan Moore and Baxter Phillips Jr.  The CtW Investment Group called for shareholders to oppose the reelection of these three directors at Massey's annual meeting on May 18.  All three were members of the Massey Safety, Environmental and Public Policy Committee (SEPPC), the board committee ultimately responsible for Massey's serious and systematic non-compliance with mine safety laws over an extended period, a risk oversight failure that likely led to the catastrophic and preventable mine explosion on April 5 that killed 29 miners and destroyed over $1.7 billion in shareholder value.

In its May 5 report, ISS concluded that,

"Beyond the recent tragedy, the company's track record of violations and fines is disturbing. Massey appears to take action mainly in response to issues identified by shareholders or regulatory agencies. The [Upper Big Branch mine] explosion put a spotlight on Massey and its leadership, but the issues highlighted in the Vote No campaign and ISS' analysis transcend concerns about this specific tragedy. A board that is no longer responsive to shareholders and does not provide sufficient oversight to management is less able to protect or enhance shareholder value. The company's track record on executive compensation further reflects the failure of the board to provide independent oversight of management."

"Today's Risk Metrics/ISS announcement adds enormous weight to the case of removing the Massey directors at the May 18th shareholder meeting," said William Patterson, Executive Director of the CtW Investment Group.  "Shareholder opinion has shifted firmly against incumbent board members whose compliance and risk management failures led to the Upper Big Branch mining disaster."

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