I have started to evaluate excessive stock options given to executives in companies that I invest. Just got my FNIS/FNF prospectus yesterday and this company has definitely raised my eyebrows. It is somewhat comforting to know that I'am not alone in my outrage. Warren Buffet is also ticked with excessive stock options. Any comments or possible actions we can take welcomed.
Exactly. The founder used his stock in the company to guarantee a series of ill-advised real estate deals during the late 80's commercial real estate bubble. Foley was asked into the picture by the founder and the banks as they were preparing to seize the stock as the real estate values had gone through the floor. The banks, in turn, did not want to run Charles Jr - needless to say. Foley initially turned it around and then acquired Hardee's in an attempt to compete with the Wendy's, McDonalds, Burger Kings. It didn't work well - obviously. On the other hand, the banks were very happy with the end result in that they recovered their money.
Have I missed something? I'm under the impression that Foley is still CKE chairman and largest non-institutional shareholder with about 1.4M shares, though with reduced day to day involvement...
SANTA BARBARA, Calif. � March 26, 2003 � CKE Restaurants, Inc. (NYSE: CKR), announced today that its Chairman of the Board, William P. Foley, II, has proposed and agreed to a restructuring of his compensation package with the Company. Pursuant to this agreement, Mr. Foley will receive no bonus for the fiscal year ended January 27, 2003; terminate his employment agreement with the Company; and enter into a director�s compensation agreement with the Company providing for a Chairman of the Board of Directors stipend. Mr. Foley stated in a letter to the Company that because of Fidelity National Financial Inc.�s pending acquisition of Alltel Information Services, he was agreeing to reduce his annual compensation from $400,000 per annum to $150,000 per annum to more accurately reflect the amount of time that he could commit to CKE. Mr. Foley stated that notwithstanding this change he would remain the Company�s "biggest fan and supporter" and would "continue helping CKE in any way possible."
Yeah, just like he did for the stockholders of CKE. Stock was at 28 when he came on board...was at 4 when he resigned. <<<<<<<<<<<
Maybe that might be an appropriate discussion to be continued on the CKE board.
Is Mr. Foley still a shareholder in CKE??
Very well said Redlac. Now if Wall Street and the average investor could just get their heads out of their a**es they would see just what FNF has done with the purchase of Alltel. FNF now services approx. 50 % of the mortage loans in the US. This mean that all of the interest that you and I pay on our loans, if serviced by FNF, now goes to them. I wish the street could understand how much money this is! I guess it will take a few quarters for the street to realize just what Foley has done.