Ethan Allen Interiors (ETD) investor relations material

Executive summary

• DGB Investment, holding 5.2% of shares, is seeking to replace the entire board with its five nominees, citing prolonged underperformance and lack of accountability under current leadership.

• The proxy contest is driven by concerns over declining revenue, market share loss, and poor digital strategy compared to industry peers.

• DGB Nominees bring expertise in retail, digital transformation, and brand revitalization, aiming to restore growth and shareholder value within 24–36 months.

• The solicitation is not on behalf of the current board or management, and DGB urges shareholders to vote using the WHITE universal proxy card.

Voting matters and shareholder proposals

• Shareholders are asked to elect five DGB nominees for a one-year term, approve a non-binding advisory vote on executive compensation, and ratify the appointment of CohnReznick LLP as auditor.

• DGB recommends voting for its nominees, against the say-on-pay proposal, and for the auditor ratification.

• Voting is via a universal proxy card, allowing selection of any combination of nominees up to five; over-voting invalidates the ballot.

• The annual meeting will be held virtually, with detailed instructions for registration and voting provided.

Board of directors and corporate governance

• DGB criticizes the current board for lack of independence, failure to plan CEO succession, and repeated waivers of age limits for director nominations.

• The proposed DGB nominees have backgrounds in e-commerce, retail, technology, and brand management, and are positioned as independent under NYSE standards.

• DGB highlights entrenched leadership, with the CEO/Chairman in place for 38 years and no succession plan discussed.