The Rising Influence of Rising Affluence

[Democritus_of_Abdera]

Re: CLF & Cassablanca Slide Set...

My initial gut feeling is to give Halverson a chance to turn CLF around...

But, I think Cassablanca has a point...

In particular, I blame the board for the dividend fiasco that happened in 2012-13... That being an initial strong dividend and a change from a growth through acquisition mode to a focus on shareholder return mode... followed by an abrupt reversal to a weak dividend with a focus upon capital preservation.

I think that the board should have had sufficient insight to avoid these wild gyrations since I did not see them driven by unusual external events that could not have been anticipated.

And, I do not think that the blame should be placed upon the former CEO Carrabba. I thought that he was left out to dry by the board when the change to capital preservation and abolishment of the dividend was executed.... That would not have happened in my opinion of Carrabba was calling the shots.... It does not bother me if the CEO is a visionary that might have the wrong vision... It is the role of the Board (and CFO) to face reality and make the CEO justify his/her vision before action is taken, again in my opinion.

So, I am sympathetic with Cassablanca's proposal to remove the board, but somewhat concerned by their plan to remove Halverson in the process.