PREIT, which owns retail properties including the Exton Square Mall, avoided what could have been a major leadership shakeup by rejecting resignations from seven board members, writes Paul Schwedelson for the Philadelphia Business Journal. 

Seven of the nine board members who were up for reelection were required to tender their resignations because they received more “withheld” than “for” votes during the company’s annual meeting. 

PREIT revealed in a filing on Monday that no resignations had been accepted. The rejections were made due to a combination of factors, including the skill sets of board members, institutional knowledge, and recommendations provided by proxy advisory firms. 

Despite the board staying intact for now, the vote sent a strong signal to PREIT’s leadership that shareholders want to see some changes, according to Charles Elson, Founding Director of Weinberg Center for Corporate Governance at the University of Delaware. 

“It’s a warning sign,” said Elson. “The patient just had a heart attack. Do they keep eating and smoking or do they dramatically change their diet?” 

The company is currently focused on selling some of its assets to get cash, including exploring the sale of the Plymouth Meeting Mall. 

Read more about PREIT’s leadership in the Philadelphia Business Journal.