By Adriano Marchese

Activist investor Browning West said it wants to be a part of CAE's executive search for its next chief executive.

In a letter to the CAE board on Friday, L.A.-based investment firm Browning West said it would like to be engaged in the process of collectively recruiting the best possible candidate for the head position.

Browning West, with a 4.3% stake in the maker of flight simulation and training systems, said the company has underperformed over the past five years, but that its significant investment reflects a conviction in the company's long-term value creation potential.

CAE was not immediately available for comment.

Year to date, the stock has risen about 16%, closing on Thursday at 32.86 Canadian dollars ($22.82). Over the past five years, however, the stock has declined by about 4.1%.

In mid-November, CAE Chief Executive Marc Parent said he was leaving the company in August, capping a two-decade career at CAE. The company has tapped an executive search firm to look for a successor, and said it is evaluating internal and external candidates with the assistance of Parent.

Browning West said it believes that with the right leader, CAE can grow earnings per share and free cash flow per share in excess of current market expectations.

"To fully realize this potential, the selection of CAE's next CEO is critical," Browning West said. "We urge the Board not to act hastily in its CEO search, but rather to engage with us to collectively recruit the best possible leader."

In May, Browning West led activists to a dramatic victory against Canadian clothing maker Gildan Activewear's relatively new board in a bitter fight which led to the resignation of the entire incumbent board and of Gildan's CEO. Browning West's entire director slate was appointed and gained full control of the board, together with the reinstatement of ousted founder and CEO Glenn Chamandy.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

December 20, 2024 09:37 ET (14:37 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.