I perceive a huge difference from being president, ceo and chairman to being on the board of a company. Excluding open market purchases of STKL, I don't see how Townsend will benefit financially from being on the board of STKL! Sure, he may get a few options and a few bucks for being on the board, but I wouldn't think he was seduced from running UNFI to becoming on the board of STKL...heck lots of execs are on other company boards. But...what will the future bring? Maybe Townsend is just getting started with STKL by being a board memeber. I'm long both UNFI and STKL. Not sure if Townsend's departure is a big deal for UNFI, but I do see his involvement with STKL, a few meetings a year perhaps, to be a plus for STKL. Cheers
Townsend was awarded 10,000 STKL options just today, strike of $5.50 (similar to other directors) - so this could end up being quite lucrative for him, especially if STKL rises to over $10-$12 by February as I and at least a few others think is likely.
Townsend made over $ 3.5 mm last year. This option grant (10,000 in STKL @ $5.5 per share), in your wildly best case, is worth about $ 50k. Not a lot to get excited about. It is a traditional grant to an outside board member; not the amount to a new powerful operating executive who is going to manage a big acquisition or divestiture.
With that said, I bought in at $ 28. I've been watching for awhile and thought it was a good buy after the October drop. I know the company pretty well and do not think there is a hidden surprise (about the company) behind the Townsend resignation.
Watch for improved cash flow and EPS when they get through the start-up costs at Rocklyn and Indy, Whole Foods start-up costs, and see operational improvements from a number of efforts they have going. I like the price appreciation potential in the next few quarters because they should finally start seeing the sales growth fall to the bottom line in a more substantial way.
Agreed that being CEO vs. Board Member is a big difference. Perhaps I overstated my arg. I think it might indicate a new direction for STKL as well as suggests Townsend's departure from UNFI wasn't due to some huge hidden problem with UNFI. -yeti