Conseco director nominee gets mixed support from proxy advisory firms

By Lisa Kerner

Charlotte, N.C., May 7 - RiskMetrics Group/ISS recommended that Conseco, Inc. shareholders elect Otter Creek Partners I, LP's nominee, Roger Keith Long, to the company's board of directors at the 2009 annual meeting on Tuesday.

"Regarding Long's value proposition for Conseco's board, we believe his extensive experience in investment management could prove beneficial for the company, especially in light of the incumbent he seeks to replace," RiskMetrics said, according to an Otter Creek news release.

"Because there is evidence of Conseco's consistent financial underperformance vis-à-vis its peers, we believe greater management oversight is warranted in this case."

Conseco said that another proxy advisory firm, Proxy Governance, Inc., recommended that shareholders vote in favor of all nine of the Carmel, Ind., insurance company's nominees.

RiskMetrics' recommendation was not surprising because it "tends to support minority dissident shareholders," Conseco chief executive officer Jim Prieur said in a company news release.

Prieur said the recommendation was disappointing given current director Phil Roberts' insurance industry and investment management experience. Otter Creek is asking shareholders to elect Long instead of Roberts.

"Phil has been a key member of Conseco's board since the company's reorganization in 2003, and we urge all shareholders to support his re-election," Prieur said.

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