Proxy firms back Fisher against hedge fund's challenge

After weeks of back-and-forth accusations between Fisher Communications and the hedge fund seeking to gain control of its board, two neutral observers have weighed in with verdicts favoring management.

Proxy advisory firms ISS and Glass Lewis both recommended Fisher shareholders support the management slate of four directors in the May 11 vote. Fisher's track record on governance and executive pay was criticized by the advisory firms, but as ISS wrote, "the dissidents have not demonstrated a compelling case."

Hedge fund FrontFour Capital, which owns 2 percent of Fisher stock, proposed its own slate. FrontFour founder David Lorber is already on the Fisher board, and said that if his slate wins it will seek "a robust and impartial auction process" to sell Fisher's assets to the highest bidder.

Fisher CEO Colleen Brown contends Fisher's operations have improved during her five-year tenure.

FrontFour says the company has continuously underperformed its peers during that period, and has spent tens of millions on unfruitful acquisitions. But Glass Lewis concluded that when put in context with the rest of the broadcast industry, FrontFour's financial arguments "appear largely unsupported."