Glass Lewis issued an environmental, social, and governance (ESG) alert for Reece (ASX:REH) ahead of the company's annual general meeting on Nov. 21.

The alert is centered on recent reports of governance and credibility issues, highlighting over-expansion, deteriorating US operations, and limited turnaround.

The Wilson family, which holds about 67.1% stake in the company, maintains control with Peter Wilson as Chief Executive Officer (CEO) and Chairman.

The recent appointment of three new independent directors has done little to shift board control, with Andrew Wilson and Bruce Wilson continuing to serve as non-executive directors.

Executive bonuses despite weak results, a 50% increase in the CEO's long-term incentive opportunity while lowering targets, and an AU$13 million legacy payout to Group President Sasha Nikolic raised further concerns, the alert said.

The alert's rationale relates to relevant media coverage and falls under board effectiveness and executive pay.

Shares of the company slid 1% in recent Friday trade.