UPDATE 1-Majority of SandRidge board should be replaced -ISS

Feb 15 (Reuters) - A majority of SandRidge Energy Corp's directors should be replaced due to governance problems, proxy advisory firm ISS said in a report on Friday.

Two of SandRidge's largest shareholders, TPG-Axon Capital and Mount Kellett Capital Management are seeking to replace SandRidge's board and oust Chief Executive Tom Ward, citing weak management and the company's poor stock performance.

"The apparent failures of stewardship on this board are legion," ISS wrote in its report, citing among other factors the company's weak capital discipline and compensation practices.

ISS recommends that SandRidge board members Everett Dobson, William Gilliland, Daniel Jordan, Roy Oliver and Jeffrey Serota be replaced by five dissident nominees including TPG-Axon's founder Dinakar Singh.

ISS is an independent firm hired by large institutional shareholders to make recommendations on how they should vote on company issues.

SandRidge's current board has seven members, including CEO Ward.

SandRidge shares rose 3 cents to $5.90 in afternoon New York Stock Exchange trading.