But not for the B's, they are set for life. Major costs need to be sucked out of the business. If you are a living breathing sole, you account for some of the highest companies costs so look out. I suggest a lot of butt kissing and posturing with your current manager. The sales team may all be put under the same compensation plan, no salaries. Prices will go higher so you can't sell at a higher commission rate and you will be stuck. They need to take all commission paying accounts away from the sales managers since they are double dipping and not managing people anymore, never really have. If you are union, you have the best shot of avoiding this upcoming avalanche of necessary cost save. All in all, if everything remains the same with the economy hitting the numbers will be tough. If the economy shats the bed, or if we end up going to war or a national tragedy, all bets are off.
This may be something to consider:
What is a Derivative Action and why would someone bring a Derivative Action? Derivative Actions generally arise when a company’s owners – its shareholders in a corporation or its policyholders in mutual insurer or bank – believe that senior management is enriching itself at the expense of the company. Derivative Actions and Class Actions are similar in many respects and are sometimes brought together. Attorneys determine whether a Derivative Action and/or a Class Action is/are appropriate depending on the legal issues in a case. In the typical Derivative Action, one or more of the company’s owners demand that their corporation take action against its directors or officers and/or others for wrongdoing that harmed the corporation. If the board of directors refuses to act, the shareholder(s) or mutual policyholder(s) may bring a derivative action against the alleged wrongdoers. In these actions, the suit is actually being brought to benefit the corporation (and thus its owners). [top] 12. What are the benefits of a Derivative Action? Historically, Derivative Actions have been brought to obtain the return of compensation or property unlawfully taken by a corporation’s management (its board of directors, officers or executives), to remove management for violations of law, or to pursue in court persons who, although they own the company money or otherwise harmed it, management will not pursue.
Valid question: How many millions does the Burton family (kids, in-laws, etc.) pull out of Cenveo every year in compensation? And the friends? What are the qualifications that warrant a few of our board members to sit on the BOD? High school principal (head master sounds better)? College president? Where is the separation of CEO and COB? A few years ago I highlighted that Robert was making more money than the CEO's of huge companies like Hershey Foods, etc.
Can you say Proxy Fight? Why were the articles of incorporation changed? Nervous
How many people can read thru the entire transcript of the call without laughing? My guess is 4; Bob, Bob, Mike, and Joe. Because they are laughing all the way to the bank. Pay special attention to the amended article of incorporate. Ole Robert is posturing against the inevitable proxy vote ouster. Here it is:
"On February 20, 2014, the Company's Board of Directors (the “Board”) approved amendments to the Company's bylaws to implement a majority vote standard for the election of directors. The Board determined to amend and restate the bylaws in their entirety (the “Amended and Restated Bylaws”) effective as of such date.
The Amended and Restated Bylaws provide that in uncontested elections director nominees must be elected by the majority of votes cast at the annual meeting of shareholders. A majority of the votes cast means that the number of shares voted “for” a director must exceed the number of votes cast “against” that director. In contested elections where the number of nominees exceeds the number of directors to be elected, the voting standard will continue to be a plurality of votes cast.
In addition, if a nominee in an uncontested election who already serves as a director is not elected by a majority of votes cast, the director shall, within ten business days of certification of election results, submit his or her resignation to the Board for consideration by the Nominating and Governance Committee. The Nominating and Governance Committee shall promptly assess the appropriateness of such nominee continuing to serve as a director and recommend to the Board the action to be taken with respect to such tendered resignation. The Board will determine whether to accept or reject such resignation, or what other action should be taken, within 90 days from the date of the certification of election results."
This, in my opinion, breach's the fiduciary relationship that comes with being the CEO and COB. Nepotism runs rampant and separation of CEO and BOD is a must
What do you mean, they will make money. Bob will make a few million, the senior managers will make a few million, his favorite son will make a few million, and the BOD yes people have made several million. What do you mean? Oh, you mean the company?
$1.19 Billion (yes billion) in debt, $8.5 Million in cash, and so on. Gulp!
Let's all pray for a proxy fight!
Let's see what the compensations looks like for all these guys once the 10K is released.
Let's see who the next senior manager is to get wacked. Most of the people left that I would have considered good guys have now all gobbled down the Kool-aide and sold their souls. I guess it pays to sell out; but remember that most people hate your guts. Don't confuse people being nice to you with people liking you, ever. I think that these people know full well who they are and probably even hate themselves at this point in time. So many lives affected in so many bad ways. They rationalize it by saying, "it's just my job and I am being asked to do it". Shameful.
Efficient plants are running #10's faster than 40MM per hour. Estimators ratchet up the speeds closer to 60MM per hour, especially on very competitive work. Speeds don't often get to that level but it makes everyone feel good, esp. David since it applies to him the most. That way he can turn around and complain that a plant isn't running well and that his sell prices aren't the problem, it is the efficiency of the plant that is at issue. But what does it matter now, he's made his money and will soon ride off into the sunset (or lung cancer clinic) with all the money he needs. Is Jacksonville a Quality Park Plant?
I think when CVO took over the assets of National, both Gors and IP got shares. Hearing that they were not to pleased with Bob's comments about wanting to put National out of business, I would not be surprised if it is an IP or Gors person. They can't be happy seeing Humpty pull down these big comp packages along with the suckling's. Now that Bob has complete price control in the market, and National is out of the picture, who can he blame for weak margins on the envelope side? Rumor has it the envelope side continues to give it away. If I were one of the other board members, I would want a board shake-up. How else are they going to ever be in a position to get their money out? Two board members are so suspect, one was a private school principal and the other a college president, seriously?
Bold statement a few weeks before the release! They already know the nimbers but are holding off until the 27th?
And I quote: "I look forward to speaking with our investors in more detail on February 27th as we are very pleased with the Company's operating performance during the fourth quarter of 2013. These results moderately exceeded our forecast on an Adjusted EBITDA basis. While we have much work to do in order to complete our integration, we remain on track to deliver our financial commitments regarding our purchase of National Envelope as early cost actions are well underway.
Just don't shut my plant Bob, please!
Wonder if Humpty started writing is speech yet? Will he once again call the numbers the nimbers? Will D. Law be on the call again? Wonder if sonny boy will talk during the call? I know one thing, add up all the payroll sitting in front of the phone and the plate of donuts probably totals about $15,000,000.00. So to all else, enjoy your stagnant pay levels. I know one thing, add up all the voting shares of the insiders and they do not even total the amount of shares of the 2 largest institutions own. Utttt oh!
How am I ever going to make my nimbers? Oh, and when it clears tomorrow, I want a few of my local managers to come to my house and shovel my driveway and walks. I am the second mansion on the right when you turn onto my street.
East coast factories will be hit hard. Doesn't the Weather God know Humpty has to make is nimbers? Has he ever extinguished that 15% loan with the 25% penalty clause? I hope so!
Damn cold again! Dinner guest told my husband and I it is Mohawk putting envelope folding machines in their factories. All the capacity Humpty wanted to remove is being added by others so there is not the pricing control he was hoping for. HE was hoping for bullying the market but things appear to be back firing.
Next subject asks whether of not there will be a Proxy fight? According to the 8K the scenarios that disallows him getting a big pay day are Voluntary Resignation, Retirement, or Death so take you pick. He gets $2,200,000.00 for Disability, $9,997,832.00 for termination Without Cause or For Good Reason too ambiguous (and what is he going to fire himself?)), and $1,141,875.00 for Change of Control. These are 2013 numbers. I vote for one of the top three!
My guess is that if this were going to happen, he would fire everyone including Jr because they all get a big pay day too. Jr stands to get over $1,600,000.00 if he is fired. Please dad, fire me!
I just love coming into work anymore.
DOW up 188, CVO down $.02 to $3.05. Yikes, Humpty Dumpty's snow bank is turning to ice so this may not be as soft a landing as originally thought.
Rumor has it that one or two paper mills are now running envelopes to compete in the wholesale market. This has to have an effect on the go to market strategy and a reason the pricing has not increased yet. This is an area that is foreign to me but there must be some impact.
Anyone else have enough of this weather, wow! 20 min ride took over an hour this am. Share price broke through $3.20 yesterday. Humpty may be right again this year! The stock price may have a "2" in front of it again. For those of your who don't know, Humpty predicted that the share price would have a "2" in front of it meaning it would be in the $20.00's about three or four years ago. Only need $16.74 point climb this year. Wonder if this Blackrock and this Puri guy are second guessing his decisions to accumulate? Slidding share price, lack of confidence in current management, and executive compensation fueling the fire of a proxy fight?
This weather is killing our shipments in mid-Atlantic. Q1 probably not so good so expect the carpet to be yanked on plant, people and equipment again. More talk that the quickest way to reduce fixed costs was to pull all the salaries away from all the sales people and put them on straight commission. Thought that they did that a few years ago.
Humpty Dumpty's fall may be broken by a snow drift. Seems that there is a never ending inventory of excuses form not making the nimbers. Snow ending here, northeast still getting heavy bands. More coming midweek and then the weekend. Good snuggling weather...
In my opinion, Blackrock likely to seek a seat on the Board or intiate an all out proxy fight. Maybe Humpty's friends on the board will bow down and turn tail on the great one. That is the best likely scenario for them to get their money back out of this. They didn't get nearly the same amount of free shares as the almighty Humpty. Can't wait to see what Robert earned this year.
Top 10 Major Holders: could very well proxy his #$%$ out of the golden throne!
Holder - Number of Shares - % of Shares Outstanding
JP Morgan Chase & Company 4,279,177 - 6.47%
Private Management Group, Inc. 4,007,270 - 6.06%
BlackRock Institutional Trust Company, N.A. 2,673,153 - 4.04%
Lonestar Capital Management, LLC 2,500,000 - 3.78%
Prescott Group Capital Management, L.L.C. 2,131,043 - 3.22%
Goldman Sachs Group, Inc. 1,668,810 - 2.52%
Vanguard Group, Inc. (The) 1,643,996 - 2.48%
BlackRock Fund Advisors 1,529,690 - 2.31%
Brenner West Capital Advisors, LLC 1,272,458 - 1.92%
Wallace Capital Management, Inc. 1,247,399 - 1.89%
This doesn't include the Mutual Fund Holders. I think a 51% vote is possible. Let Humpty be the CEO but remove him from teh board along with all his yes minions.
The following is a press release from Standard & Poor's om 1/24/2014:
-- U.S. printing company Cenveo Inc. (CVO) did not complete the proposed
repricing of its term loan in December.
-- The proposed repricing would have alleviated the company from
potentially breaching its total leverage covenant.
-- We are placing our 'B-' corporate credit rating on CreditWatch with
-- The CreditWatch listing reflects our view that the company's cushion
of compliance is potentially well under 15%. We could lower the rating if the
company is unable to amend its covenants in a timely manner.
I thought it was going to get better? Where is the best management team in the business when you need them the most?
...at least reduce their fixed costs by tens of millions of dollars to be competitive in today’s print environment.”
So so funny.
Everyone digging out up north? Just skirted us with a couple inches, cold but not too bad.