Beaver Hollow Wellness Responds to Servotronics' Escalating Proxy Tactics

Rhea-AI Summary

Beaver Hollow Wellness (BHW), the largest active shareholder of Servotronics (NASDAQ: SVT), has issued a response to the company's amended proxy statement filed April 22, 2025. BHW criticizes the board's insertion of 'change of control' compensation provisions, which could trigger accelerated equity awards and enhanced severance benefits for executives if a majority of directors are replaced.

BHW's chairman, Paul L. Snyder III, argues that the board is prioritizing executive payouts over shareholder value. The activist investor aims to implement lean manufacturing principles, improve supply chain operations, and enhance deliverability. BHW has nominated four professionals with expertise in aerospace, finance, manufacturing, and governance: Paul L. Snyder III, Christine R. Marlow, Michael W. Dolpp, and Charles C. Alfiero.

Positive

• Largest active shareholder pushing for operational improvements and corporate governance reform
• Proposed implementation of lean manufacturing and supply chain optimization
• Nominated board members with relevant industry expertise

Negative

• Board implemented 'change of control' provisions that could lead to significant executive payouts
• Current management criticized for prioritizing executive compensation over shareholder value
• Corporate governance concerns regarding board accountability

Calls for Accountability and Shareholder-Centered Reform

BUFFALO, N.Y., April 23, 2025 /PRNewswire/ -- Beaver Hollow Wellness, LLC ("BHW"), the largest active shareholder of Servotronics, Inc. (NASDAQ: SVT), today issued the following statement in response to the Company's amended proxy statement filed April 22, 2025:

"Servotronics' latest filing is a clear sign of a board under pressure and out of touch," said Paul L. Snyder III, Chairman of BHW. "The escalation in rhetoric, along with newly inserted language about 'change of control' compensation, demonstrates that the Company is more focused on protecting executive payouts than delivering value to shareholders."

Change of Control Provisions – A Self-Serving Shield
In a newly inserted clause, the Board claims that replacing a majority of directors could trigger "change in control" provisions that result in accelerated equity awards and enhanced severance benefits for current executives. It is outrageous that the very Board responsible for awarding these outlandish payouts, is now attempting to use them as a scare tactic with shareholders.

This Board has focused on granting Golden Parachutes to their cronies, in stark contrast BHW is focused on rebuilding this once great manufacturing company. Any executive payout should be fair, transparent, and performance-based—not triggered by shareholder votes for accountability.

BHW Reaffirms Its Commitment to Responsible Stewardship
BHW seeks to implement lean manufacturing principles, overhaul supply chain operations, and ensure zero-defect deliverability. not to disrupt the company's operations. Instead, it seeks to introduce oversight that prioritizes shareholder interests, responsible capital allocation, and operational excellence. The nominees include professionals with backgrounds in aerospace, finance, manufacturing, and governance.

"We call on shareholders to reject the fear tactics and vote for experience, independence, and accountability," Snyder said. "Our SAVE Servotronics plan is clear, constructive, and credible."

Vote for Real Change
BHW urges shareholders to use the WHITE universal proxy card to vote for all four BHW nominees:
- Paul L. Snyder III
- Christine R. Marlow
- Michael W. Dolpp
- Charles C. Alfiero

For more information, visit: www.SaveServotronics.com

Media Contact
Kevin Keenan
Keenan Communications Group
(716) 481-6806
kevin@keenancommunicationsgroup.com

Investor Contact
Brian Valerio
Alliance Advisors
BHW@allianceadvisors.com

View original content:https://www.prnewswire.com/news-releases/beaver-hollow-wellness-responds-to-servotronics-escalating-proxy-tactics-302435938.html

SOURCE Beaver Hollow Wellness

FAQ

What are the key changes proposed by Beaver Hollow Wellness for Servotronics (SVT)?

BHW proposes implementing lean manufacturing principles, overhauling supply chain operations, ensuring zero-defect deliverability, and introducing stronger oversight focused on shareholder interests and operational excellence.

How would the 'change of control' provisions affect Servotronics (SVT) shareholders?

If a majority of directors are replaced, these provisions would trigger accelerated equity awards and enhanced severance benefits for current executives, potentially impacting shareholder value.

Who are the four nominees proposed by BHW for Servotronics' (SVT) board?

BHW has nominated Paul L. Snyder III, Christine R. Marlow, Michael W. Dolpp, and Charles C. Alfiero, professionals with backgrounds in aerospace, finance, manufacturing, and governance.

What is the main criticism from BHW regarding Servotronics' (SVT) current board?

BHW criticizes the board for focusing on protecting executive payouts through golden parachutes rather than delivering shareholder value and maintaining proper corporate governance.