ISS backs NextGen's slate in proxy contest with company founder

BOSTON (Reuters) - Institutional Shareholder Services on Friday recommended that NextGen Healthcare Inc shareholders elect management’s four board nominees and eliminate cumulative voting.

The influential proxy advisory firm is backing management and the board instead of supporting the founder of NextGen, Sheldon Razin, who has nominated four directors to the board. Razin has criticized the company’s poor financial returns.

ISS said recent changes to the board and management “appear sufficient to put the company in a stronger position to execute its strategy to grow revenue,” and added, “The dissident has not made the case that additional change is preferable at this time.”

NextGen last month hired healthcare information technology veteran David Sides as its chief executive officer, three months after his predecessor left.

Razin, who has served on the board since 1974, nominated two existing board members and two additional candidates to replace four members of the board.

Management nominated four current board members but not Razin.

Shareholders will be voting on Oct. 13.

Reporting by Svea Herbst-Bayliss in Boston; Editing by Matthew Lewis