Why are the senior executives employed? You have to look at the Board members and their backgrounds per the SEC Proxy filed 3/28/2012:
§ JENNIE S. HWANG, Ph.D. “Dr. Hwang is an invited guest columnist for Global Solar Technology magazine.” Hey just what we need an expert on solar when solar companies are going bankrupt left and right, even with Obama’s financial help.
§ PETER T. KONG “From 1998 to 2006, Mr. Kong served as President of Asia-Pacific Operations for Lear Corp., a global automotive supplier” How cool, we need a man who knows the automotive seat business? (Is his nickname “King?)?
§ SANDRA AUSTIN “Ms. Austin is a Managing Director with Alvarez and Marsal, a professional services firm. Ms. Austin joined the firm in January 2006. Prior to that, Ms. Austin was President and Chief Executive Officer of PhyServ, LLC, a health care billing, collections, receivables and information company.” Well at least we have a restructuring expert on board in the case of bankruptcy, which is what Alvarez, and Marsal is known for. Maybe she can collect some of the old accounts receivable on the books and help out the new CFO.
§ RICHARD C. BROWN “Mr. Brown currently serves as the Chief Executive Officer of Performance Fibers, a global leader in high-performance industrial fibers and related materials.” Now this guy makes sense for the Board, GE experience as well. Is he examining and challenging the strategic plan and its process??
§ RICHARD J. HIPPLE “Mr. Hipple is the Chairman of the Board, President and Chief Executive Officer of Materion Corporation (formerly known as Brush Engineered Materials Inc.), a manufacturer of high-performance engineered materials.” This guy should be able to ask the hard questions too – but is he???
§ GREGORY E. HYLAND This guy’s background includes Ryder Trucks – at least we can get a discount on truck rentals when the corporate office is closed and the furniture removed.
§ WILLIAM B. LAWRENCE “Mr. Lawrence served as TRW’s Executive Vice President, General Counsel & Secretary.” And retired in 2003. Need some operations experienced directors, not some corporate counsel who has been out of action. He is also on the Board of Materion – Hipple’s company noted above. Nothing like a good ‘ol boy network!!!
§ TIMOTHY K. PISTELL “Mr. Pistell served as the Executive Vice President–Finance & Administration and Chief Financial Officer of Parker Hannifin Corporation, a leading diversified manufacturer of motion and control technologies and systems until his retirement on March 31, 2011.” Ok we do need someone who knows finance and the SarBox requirements and keep an eye on the CFO. But is he taking a hard look at the balance sheet each month??
§ RONALD P. VARGO “Mr. Vargo served as Vice President and Chief Financial Officer of ICF International from April 2010 until May 2011. Prior to joining ICF International, Mr. Vargo served as the Executive Vice President and Chief Financial Officer of Electronic Data Systems (“EDS”) and served as a member of the EDS Executive Committee. Mr. Vargo joined EDS in 2004 as Vice President and Treasurer and was promoted to Co-Chief Financial Officer in March 2006. Before joining EDS, Mr. Vargo served as Corporate Treasurer and Vice President of Investor Relations at TRW Inc., now part of Northrop Grumman, until 2003. Good ‘ol boy network with Lawrence at TRW?? We have a finance guy – don’t need two of them
So my amigos these are the people who hire and set the pay for the executive officers. Do you have the confidence in them as shareholders?