I agree with the sentiment on the board- could've been announced with better timing and intent, but however positive our view was on the CEO, he can't move forward without the board's approval on actions that drove to form our positive sentiment in the first place. And remember, there are things that we did not like about Art: the lack of promotion, zero discussion on a wholly owned product that's collecting dust on their shelf, he was originally keen to be transparent during the merger, but that went away pretty quickly, and for me personally, I think his ability to promote and represent the brand is a bit dated- if I was CEO, I'd fire their web designer, and hire someone that will make their website something that doesn't look like it was made on a Tandy computer.
In the end, it's the BOD that voted to terminate the contract or it was the CEO terminating it on his own:
If we consider the CEO choosing to leave, it could be for a thousand reasons that we may never know (I even delved into obituaries thinking someone close to him died and he needed out of the game). I personally don't believe it was a conflict with his own contract. Maybe the challenge is gone-maybe he's a "right the ship" kinda CEO and finds no value or interest in being at a company that is sailing in the right direction. I know a lot of CEO's that have this personality. I also know CEO's make substantially more money righting the ship than simply staying a course.
IF we consider the BOD terminating it and the CEO forced to accept it--which often happens--there's going to be a point where the BOD realizes keeping him on would compromise the growth of the company, and that difficult decision needs to be made. I think they've already found someone, but can't reveal this bc they're still vetting other candidates (this is also often done).
We worry bc we're familiar with Art, and the new person coming in is unknown, could tank the company, but the BOD, Blackrock, MVP won't allow that to happen unless they want it to happen.
Change is scary but it's a good thing.
-RG
