UPDATE 1-Marcato cuts its nominees to Deckers' board to three from nine

(Adds details of nominees, background)

Dec 4 (Reuters) - Activist hedge fund Marcato Capital Management said on Monday it cut the number of nominees to Deckers Outdoor Corp's board to three from nine amid a prolonged proxy fight in which Marcato is seeking major changes at the UGGs boot maker.

Marcato, which owns 8.5 percent of Deckers' shares, has nominated former Morgan Stanley exec Kirsten Feldman, Steve Fuller, who was previously marketing chief of apparel brand L.L. Bean, and ex Michael Kors executive Anne Waterman to the footwear maker's board.

The three nominees do not include any representative from Marcato.

Deckers was not immediately available for comment.

Institutional Shareholder Services (ISS) on Friday had recommended Deckers' shareholders back management nominees, but suggested withholding votes for three Deckers directors to make room for three dissident candidates to join the board.

Marcato also said ISS had suggested Deckers' stockholders to vote for Marcato nominees Fuller and Waterman.

"The company's prolonged underperformance, retreating cost and investment discipline, and the board's lack of urgency in the face of significant industry disruption to address these issues suggest that some degree of board change is necessary," ISS stated on Friday.

In June, Marcato had threatened to replace Deckers' board in the annual shareholder meeting to be held on Dec. 14 if the company did not find a buyer after its review of strategic alternatives.

(Reporting by Gayathree Ganesan in Bengaluru; Editing by Martina D'Couto)