nwec cannot afford to supply their work force with proper safety equipment, but they CAN afford to give their managment hundreds of thousands of dollars of company stock, and pay dividends to stock holders. when my coworker gets injured on the job because nwec could not afford the proper safety equipment..how much will the stock holders pay? how much will the b.o.d. care?
Actually, they gave management millions worth of stock. For a "Leader" wanting to show that this is the "New Northwestern", Mr. Drook has sent a clear message to employees and shareholders. Why they were given so much, I'm not sure. The BOD has sure been invisible. I would have thought at least the Chairman would have had something to say coming out of bk.
I feel the dividend was necessary. There isn't much of a reason to buy the stock right now, other than a dividend.
I still believe this company is going to be sold. A couple of reasons are: Drook and Hanson are still there, If the new owners were going to keep the company long term, I believe they would have brought in new management. They were both hand picked by Merle Lewis (enough said). The company indicated in their earnings call last week that they will spend a bit less on capx then they did last year. This from a company that has been neglecting the core business infrastructure for some time. You can't neglect it for ever. Drook also indicated that he does not want to pay off much more debt, saying that they are almost where they want to be. This could be poison pill mentality, but not real good for the company. It looks to me like the company is being run like they don't plan on being around long term.