Two major proxy advisory firms have recommended that PENN Entertainment Inc. (NASDAQ: PENN) shareholders vote in favor of a proposal to declassify the company's board of directors at the June 16, 2026 annual meeting.

Institutional Shareholder Services and Glass Lewis & Co. both issued recommendations supporting the shareholder proposal submitted by UNITE HERE, according to a statement from the labor union.

The proposal seeks annual elections for all PENN directors rather than the current staggered board structure. PENN shareholders previously supported board declassification in 2010, but the board has not implemented that outcome, UNITE HERE said.

"We are pleased that ISS and Glass Lewis have both concluded that shareholders should support annual elections for all PENN directors," said Michael Hachey, UNITE HERE's director of gaming industry research. "These recommendations reinforce what shareholders have communicated for years: that annual director elections enhance board accountability and are a fundamental governance best practice."

The proposal is non-binding and does not call for immediate implementation. It requests that the board take steps necessary to declassify the board in a manner consistent with applicable law and gaming regulatory requirements.

UNITE HERE noted that declassification proposals in 2025 received average shareholder support of 77.9% and passed at an 86% rate. The organization also pointed to several gaming companies that maintain annual director elections, including MGM Resorts International, Caesars Entertainment, and Boyd Gaming.

The information is based on a press release statement from UNITE HERE.