UNITE HERE is asking PENN Entertainment Inc. shareholders to support a proposal to declassify the company's board of directors and transition to annual elections for all directors at the annual meeting on June 16, 2026.

The labor union noted that PENN (NASDAQ: PENN) shareholders previously supported declassification in 2010, but the board has not implemented that outcome. According to data cited by UNITE HERE, declassification proposals in 2025 received average shareholder support of 77.9%, with a passage rate of 86% across 14 proposals.

UNITE HERE stated the proposal would support long-term value creation, enhance accountability during industry disruption, and reduce entrenchment risk. The proposal is precatory, meaning the board retains discretion to determine whether to proceed with declassification.

The company's board has recommended against the proposal, citing concerns about gaming regulations and the ability to attract director candidates. PENN argues that operating under extensive regulatory review and licensing requirements for directors creates unique challenges in the gaming industry.

UNITE HERE countered these arguments by pointing to gaming industry peers that maintain annual elections, including MGM Resorts International, Caesars Entertainment, Boyd Gaming, Golden Entertainment, and Full House Resorts. The union noted that these companies operate under similar Nevada gaming regulations that require licensing of directors.

PENN reported owning, managing, or having ownership interests in 42 gaming and racing properties in 19 states as of year-end 2025, operating in 28 jurisdictions throughout North America. UNITE HERE compared this to Caesars Entertainment, which maintains annual elections and reported 52 domestic properties in 18 states.

The union emphasized that annual elections would align PENN with governance standards embraced by industry peers and modern accountability practices.