Richmond Va. (April 25, 2019) – The Lumber Liquidators Value Committee (LLVC) is urging shareholders to vote AGAINST all Board proposals to be tabled at the Lumber Liquidators (NYSE: LL) Annual Shareholder Meeting on May 22, 2019.
The Board of Directors at Lumber Liquidators has recently hired a proxy advisory firm in an effort to contact and influence shareholders to approve proposals which will increase executive pay and dilute shareholder holdings. The Board is effectively using company money to help pass proposals which harm shareholders. It seems clear that Management and the Board of Directors are more focused on self-enrichment and collecting stock options and equity incentive rewards than actually turning around the company to the benefit of all shareholders.
Non Shareholder-Friendly Proposals
- In 2018, CEO Dennis Knowles received a 7.41% increase to his base salary for “merit.” Knowles also received equity grants valued at $1,250,000. His total compensation for the year was over $2.3 million. This hardly seems appropriate considering that Lumber Liquidators’ stock collapsed almost 70% in 2018 and the company lost over $54 million. For 2019, the company has doubled the Bonus payout rate for the lowest level of performance (threshold level), thereby further rewarding and incentivizing mediocre performance. Shareholders must vote AGAINST the executive compensation plan (Proposal 3) in order to stop extravagant salary increases.
- Furthermore, the Board of Directors wants to increase the number of shares of common stock authorized for issuance by 1,750,000 in order to grant still higher equity-based compensation awards. Due to the low stock price, management has been issuing increasingly higher levels of stock-based compensation. Shareholders must vote AGAINST the amended equity compensation plan (Proposal 4) in order to stop the dilution of their holdings.
Enough is Enough
LLVC is composed of shareholders with a significant equity stake in Lumber Liquidators. We have a turnaround plan for the company and our goal is to rapidly increase growth, profits and the share price. Concurrently, we insist that the Board of Directors conduct a strategic review to gauge interest for either a strategic or financial buyer to take over the company, should the premium be substantially beneficial to shareholders. Shareholder support for our proposed changes is strong and growing by the day. More details can be found at http://rebuildll.rizzicapital.com/