ReBuild LL – A Proxy Fight to Boost Growth and Profits at Lumber Liquidators › Forums › General › Director Famous Rhodes
bGuestJuly 18, 2019 at 4:12 pmPost count: 89496
I spoke to Mr. Famous Rhodes (561-9120-8000) …he refused to answer why he (or any director) hasn’t bought stock while collecting massive director fees…he did say his comp was in stock …big fat lie he was paid $66,238 cash and stock of $$87,416 total comp of $153,654 – per pg.34 of 2019 proxy. When asked if he indented to buy as a C. Tyson (management) did on 5/30/2019 buying 4,000 shares he refused to answer. The best part was he hung up on me when challenged him on the overall poor performance since his appointment to the board and how a buying of stock would show support to employees and investors .A sophisticated business man was scared to have a civil conversation about performance and his lack of financial commitment to the business he oversees.Ooo Blah DeeGuestJuly 19, 2019 at 8:06 amPost count: 89496
Good work. I’ve only spoken to customer service and to the proxy fight guys we hired. I’d probably lose it if I got into a discussion with anyone actually responsible for LL’s past three years. But anything short of verbal (and of course, physical) harassment is justified by the terrible job this board and management has done. It’s not just the poor business results, or the fact that their results are worse than all their competitors, (except maybe TTS which at least pays a dividend, and hasn’t resorted to slashing pricing yet). And it’s not that the board is complacent about those poor results. It’s the fact that they tolerate repeated decisions that harm shareholder interests. From not giving a statement on an unexplained drop like yesterday’s, to deliberately misleading statements about legal problems in an investor presentation, to funding a proxy contest with individual shareholders using shareholders’ money, this board has walked right up to the legal limits. If they were short, or working for shorts, and wanted to provoke another lawsuit this board wouldn’t act any differently. Individual shareholders have opposed lawsuits because of the cost and interminable depressing of the stock price. But as the price goes lower, and this management appears to be tenured for life, a shareholder lawsuit can’t do any additional harm or further delay real action that will never come from this management.NelsonGuestJuly 19, 2019 at 12:36 pmPost count: 89496
“And it’s not that the board is complacent about those poor results. It’s the fact that they tolerate repeated decisions that harm shareholder interests.”
It’s that the board has no experience in flooring or relevant retail operations. They would not even know how to gauge if a decision by the current management team is good or bad. They cannot guide the management or rate them because the board itself has no understanding of the industry. Look at their corporate biographies. Not a single director has any experience in the flooring or building space.