Sheldon Razin and Lance Rosenzweig Continue Obstruction of Board Refreshment, Good Governance and Efforts to Reach Mutually Agreeable Resolution
NextGen Healthcare Board of Directors Remains Committed to Serving Best Interests of ALL Shareholders
ATLANTA–(BUSINESS WIRE)– NextGen Healthcare, Inc. (NASDAQ:NXGN), a leading provider of ambulatory-focused technology solutions, today issued the following statement on behalf of all members of the NextGen Healthcare Board of Directors, other than Sheldon Razin and Lance Rosenzweig:
Sheldon Razin and Lance Rosenzweig are once again obstructing the Board’s efforts to drive Board refreshment and reach a mutually agreeable resolution with respect to the proxy contest they have initiated.
As previously announced, NextGen Healthcare’s Board has been working with Spencer Stuart since February to identify new, independent directors that bring relevant expertise and perspectives to support the Company’s continued success and strategic execution. This work led to the recent announcement of two new independent directors: Geraldine McGinty, MD, MBA, FACR and Pamela S. Puryear, PhD, MBA. Dr. McGinty and Dr. Puryear bring substantial experience relevant to the healthcare industry, including in executive management, operations, clinical practice and talent development, while also advancing board diversity.
As part of the Board’s work to identify new, highly qualified director candidates, NextGen Healthcare recently announced that the Board would consider the four independent individuals nominated by Sheldon and Lance consistent with its policies and procedures for considering proposed stockholder nominees. The Chair of the Nominating and Governance Committee has attempted, in good faith, to schedule interviews with these four individuals and Spencer Stuart. We believe these conversations are important to better understand the respective candidate’s experience and interest in joining the Board and to also provide them the opportunity to ask questions about the Company. Certain of these candidates have expressed their openness to having these conversations.
However, Sheldon and Lance obstructed these efforts, stating:
“You are hereby on notice that you are not authorized to unilaterally contact the nominees without Shelly’s authorization to do so.”
“We do not see any reason for our candidates to be subject to interviews with the Nomination and Governance Committee or Spencer Stuart.”
What are Sheldon and Lance afraid of?
It is clear who is imperious and who wants control – it is the 47-year board member, Sheldon Razin, who is unwavering in his unwarranted, disruptive, costly proxy contest, which he initiated to advance his own interests – preserving his seat on the Board, as he has said, forever.
Shareholders should remember: When Sheldon Razin’s role as Board Chair concluded, NextGen Healthcare was a deteriorating business with unproductive R&D investments and a disenfranchised customer base. Moreover, Sheldon’s capital allocation plan prioritized $400 million in dividends that thwarted sustainable high growth and largely benefitted him personally. It was only after we established new leadership that we could begin to turn around the Company and position it as a market leader.
We are committed to acting in the best interests of ALL shareholders and again extend an invitation to the four director nominees to speak with us.
