CAW Mgt and Board need to begin thinking like owners
This seems like a good little company that has created a niche for itself. However, I wonder if the founders have poisoned the culture since they run it in order to pay as much cash to themselves as possible, rather than try to increase shareholder value for all shareholders.
Case in point, the CFO owns only 2279 shares. Really? He's been with the company a number of years and has only a little over $10k in CAW? The new CEO owns more, but not a substantial enough stake to make him think like an owner.
The founders who are not semi retired but making more money than anyone else at the company have allowed greed and ego to take advantage of their position of power as they hold the controlling A shares. The cash they have taken out of the company cannot be logically substantiated. The cash they continue to take out in retirement is absurd.
I know the founders like to say they started this company 30 years ago and deserve the outsized compensation. I disagree. This company shouldn't be public. It incurs the expenses of being a public company, which us small shareholders absorb, only to sees management drain as much cash for themselves as if it were a private company. If CAW were a private company now, there is no way it would go public. The founders have mismanaged the company and now retire leaving their sons and us shareholders paying them a lot of money as CAW struggles as a public company. I hope Sardar challenges all this because the founders have been irresponsible in the way they have managed and left the company upon their exit.
I hope Biglari and Cooley can change this mindset because you need people who have an incentive to grow shareholder value making decisions.
I believe this stock is undervalued and I own shares. But, I believe the founders, the Board and management are taking advantage of shareholders and not upholding their fiduciary duty.