The proposal by inmate rights activist Alex Friedman to have Corrections Corp. of America report twice a year on its efforts to eliminate sexual abuse at its facilities garnered a sixth of the eligible votes at the company's recent annual shareholders' meeting. CCA had countered Friedman's push by saying it already reports regularly on the issue and plans to adhere to new guidelines being finalized by the U.S. Department of Justice.
CCA on Friday also said it plans to buy back $60 million of its $150 million of senior notes that are set to mature in 2014. Those notes carry an interest rate of 6.75 percent.
The two most prominent firms advising investors on how to vote their shares have issued different recommendations on a call for Corrections Corp. of America to step up its reporting of sexual abuse at its facilities. Activist Alex Friedman wants Nashville-based CCA to report twice annually on its efforts to prevent sexual abuse. The company says it is doing what it needs to now and is waiting on final reporting standards from the Department of Justice. In a letter to shareholders, CCA General Counsel Steve Groom outlines the company's reasoning and says advisory firm Glass Lewis agrees with its opposition to Friedman's proposal. ISS, on the other hand, has told shareholders to side with Friedman.
We believe, like Glass Lewis, that the proposal’s request for bi-annual reports is overly prescriptive. The Board and management of our company should have the discretion to determine the timing and scope of data reporting within the context of the evolving requirements of government agencies, such as the DOJ, and our partners.