TheCount11 wrote: I agree company is not being run with the interests of all shareholders in mind. I also agree that the assets have a lot of value. There are a variety of assets and inputs with the main outputs being food and wine. Management has not used the assets to maximize shareholder value over the last 12 years if not longer. When I look at a long term series of profits, executive compensation and interest expense a troubling picture emerges.
The majority of Shares are Class A (35,243,647) which have delegated all decisions and responsibilities to Class B (8,144,183). If both parties to the relationship are utility maximizers, there is good reason to believe that the B Class will not always act in the best interests of the A Class.
"On February 9, 2024, the Company entered into agreements with Peller Family Enterprises Inc., the Company’s controlling shareholder, and others to formalize the retirement and transition of John E. Peller as President and CEO as announced on November 9, 2023. In accordance with these agreements, the Company is required to pay $3.0 million in legal and advisory fees on behalf of shareholders, which will be paid in the fourth quarter of fiscal 2024. The agreement will pay John E. Peller $4.5 million in a retirement allowance in addition to his ongoing salary as President and CEO until a successor is appointed. In addition, the Company has also entered into a consulting agreement with John E. Peller that will take effect upon his retirement and transition, which
will include regular monthly payments for services provided and a $2.0 million consulting fee, that will be paid quarterly. The Company also amended its credit facility to accommodate these payments."
The dollar equivalent losses to Class A are not just the $9.5 million but all the debt piled on, the missed profits and the captain leaving the ship as it enters a massive storm.