Six Words: Deficit, Leadership, Similar, Affinity, Creation, Redeem
Everyone recognized that the company had a deficit of good leadership. The question, though, is whether the deficit was only among the corporate executives, or whether it was because of the Board of Directors. Investors were concerned that the Board would select a new CEO who was similar to the one being replaced. They were likely to have an affinity for that kind of person. In an effort to redeem themselves, the Board created an unusual search committee, one comprised not only of Board members, but also with a number of employees. At the next annual meeting, we’ll see whether share holders reelect the Board, or whether the Board gets replaced too.