This is the only publicly-traded company I've ever heard of that has kept the same CEO while its stock went from $70 to 70 cents.I've said before, McClatchy's board of directors is completely hapless.
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This is the only publicly-traded company I've ever heard of that has kept the same CEO while its stock went from $70 to 70 cents.I've said before, McClatchy's board of directors is completely hapless.
14 comments:
Welcome to McClatchy!
I think he has the goods on the BOD. Information so protected, it cannot be known outside the family. This BOD lunacy is not something simple like they are stupid, it’s more sinister than that. Perhaps they are planning on going private, and soon the family will buy up the penny stock pile at unbelievable bargain prices. Something, what???
It would be easy to believe it was something sinister, however, it is not. They just don't have the power to do anything other than check the block. Period. Can't go private either. To do that they would have to pay off not only the shareholders, but the debt, and we already know how that is working out.
I think the family has long been tired of the newspaper industry, and just wants to move on. Kevin and Molly both dabbled in the early days. Brownie is just well, Brownie; quirky as ever.
The days of Miss Ellie are long gone, and CK knew that when he could not find a family member to take a true leadership role.
There may be something to what you say. From the looks of it Brown unloaded about 3 million shares over the past few months. Molly still has hers though.
Just a few weeks ago, another McClatchy genius, Howard Weaver, said McClatchy's boat is secure under Captain Pruitt.
My perception of the board is a bunch of scared, naive oldsters totally dependant on Pruitt as the care-giver. They're more hapless than ignorant and unwilling to make any major changes. Of course, the recipe for this fiasco is total destruction of the once-proud company.
There was a post on this blog about the duties of the BOD. As I recall, their main job is to make sure the CEO is a good steward of the company‘s business. How in hell could anyone think he is doing a good job? I think they can fire Pruitt, and they are derelict in their duties not to do so.
It is getting like you need to take notes or something to keep up. I think there was a CEO of a newspaper fired not long ago. How did he get fired? The BOD made a decision? Maybe if the MNI BOD wasn’t totally inbred, firing Pruitt would be easier. Why don’t the stockholders have a stake in this decision? They are the ones bleeding to death, or DOA already. Something stinks when a bunch of old fogies can let a company crumble while that play croquet on the lawn.
The MNI BOD are treating the newspaper like an old toy, once a favorite, but now, just tiresome?
Why don’t the stockholders have a stake in this decision?
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Because the company is controlled by family owned, "super shares" that give them a majority on any vote.
The above duties for a board of directors, to insure that the CEO is a good steward of the company's business, does not apply to the configuration and bylaws of MNI.
How would a shareholder know all these things before investing? Is this sort of information about the BOD common knowledge? I sure as hell would not want my investment with a company playing little family games.
You can find this sort of information from several sources. Prospectus, Annual Reports and SEC Filings contain such information but it is usually hidden in legalese. Analysts and Brokers usually have a good grip on companies who's public stock offering is more of a sham than anything.
Basically it takes research, reading everything you can get your hands on and if you can afford it, buying reports. There are things to watch out for. Multiple types of stock listings and an insider holding number that is through the roof. Insider holdings for a truly public stock is usually somewhere in the neighborhood of 1%. When you see that number around 50% that should tell you something.
Your best tool going though is to simply ask in related forums. You don't have to rely on the press anymore. You can actually get the truth or much closer to it in blogs and forums than you can from the company itself. The only problem is that you have to act as your own filter.
Howard Weaver is senile. All you have to do is read his blog. He is living proof of the lack of leadership this company has. If it was a crime to ruin a business like those two idiots have they would be serving life terms in prison.
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