Ronald L. Chez Sends Additional Letter to the Board of Directors Requesting Action
CHICAGO, Nov. 19, 2013 /PRNewswire/ -- The following is a letter to the Ironclad Performance Wear Corporation Board of Directors from Ronald L. Chez.
Vane & the Board of Directors - Pursuant to our conversation, I have the following concerns:
As I said, the hiring of a new CEO, consistent with a quality search, should be completed as rapidly as possible. The company needs clarity of direction. That needs to be provided by a new CEO.
As ICPW is developing its budget for next year, I would like to see great emphasis placed on keeping fixed costs tightly controlled, combined with compensation plans that provide rewards that are directly correlated with performance. A very disciplined break even is an imperative.
I believe a plan should be developed for ownership of ICPW stock by key officers and all directors. That means actually purchasing the stock in addition to whatever option plans are appropriate. I believe "skin in the game," actual purchases, are notably constructive with respect to achieving results consistent with shareholder expectations. There are many existing models for a stock ownership plan that you can utilize as a model.
Please note that the shareholders receive no options... "just" a one year, 35% to 50% decline in ICPW's valuation, and no liquidity.
I would expect the Board to aggressively pursue a range of strategic alternatives to create shareholder value, including but not limited to, stock buybacks, hiring an investment banker to evaluate a potential sale of the company, etc.
I would expect that the Board would accommodate my desire to have appropriate Board representation.
I look forward to further discussions. Given the lackluster performance of the company, there should be a significant sense of urgency to correct operating problems and position the company to deliver results that reward the shareholders.
SOURCE Ronald L. Chez
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