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Ethan Allen Urges Shareholders to Elect ALL Five Company Nominees to Oversee CEO Transition and Profitable Growth

  • Ethan Allen Interiors Inc. urges shareholders to vote FOR all five company nominees and WITHHOLD on all five DGB nominees for the November 4, 2026 annual meeting.
  • The company plans to announce its next CEO by June 30, 2027, with the CEO & Chair roles remaining separate.
  • Independent directors are leading the CEO search with a nationally recognized firm & the board is evaluating new director additions with expertise in cybersecurity, AI, supply chain, or vertical integration.
  • After the CEO transition, current CEO Farooq Kathwari will serve as a non-executive director until the 2027 annual meeting before leaving the board.
  • The company reported $52.5 million in operating cash flow for fiscal 2026 & ended the year with no debt to fund growth investments.
  • Marketing spending rose 10% in fiscal 2026 with a projected 15% increase for fiscal 2027 to support digital initiatives like online designer appointments & 3D room planners.
  • DGB proposes replacing the entire board, installing an interim CEO, then selecting a permanent CEO, which the current board argues risks delaying investment decisions.
  • The current board opposes DGB's interim candidate, Stefanie Tsen Ward, citing her lack of public company CEO experience or manufacturing leadership.
  • The board highlights concerns over unclear authority & accountability under DGB's proposal regarding growth investments & results.
  • The company questions DGB's financial projections & demands clarity on annual cash investment, working capital needs, expected returns, & consequences for missed targets.
  • The board cites Farooq Bergeron's track record at VeriFone, including a 2007 SEC settlement over overstated operating income by 129% & a $95 million shareholder litigation settlement.
  • The board notes VeriFone's 2013 admission that employees circumvented U.S. sanctions compliance measures during Bergeron's tenure.
  • ISS's 2013 review of VeriFone found negative shareholder returns & a pay-for-performance disconnect under Bergeron's leadership.
  • Shareholders are instructed to vote via internet, telephone, or mail using the BLUE proxy card at www.VoteEthanAllen.com.
  • Ethan Allen is a vertically integrated interior design destination that manufactures approximately 75% of its custom furniture in North American facilities.