The attached letter is from ATD and was sent to the Board today. It concerns our profit sharing money and the Board’s proposals to change the plan. This is YOUR future and YOUR wallet that they have now gotten their hands into. We told you this would happen and it appears to be happening. You can read the letter yourself but after reading this several times we can give you a summary.
- ATD first talks about the 51 successful years of the plan under his and his father’s leadership and how over those years the plan returned a healthy average annual return of 6.7%.
- ATD next talks about changes this new Board has made since July 2013 including the firing of Bill Marsden and Harold Sullivan as Trustees. ASD criticizing management’s and the Trustees handling of the plan as part of a court filing .
- The new Board made “misleading, incomplete and libelous attacks” on the former Trustees and ATD on the Board’s website www.dsmboardinfo.com. and claimed to be in the process of looking for a nationally recognized investment firm to ensure a better yet conservative return “while avoiding the mistakes made by the former Trustees requiring a $46 million company bailout for bad investment decisions.” it is important to note here that the company sued Goldman Sachs for the bad investment and the company won a settlement.
- The new Board amended the plan three times without informing management or even ATD who is still a Trustee of the plan
- For the first time in it’s 51 year history the Board voted to compensate new Trustee Ron Weiner for being a Trustee, a previously uncompensated position.
- The Board took credit for a larger compensation even though associates saw right through the rhetoric and realized the larger compensation was due to greater pay and more plan participants not the Board’s “generosity”.
- The Board pushed through a vote to freeze the settlement proceeds from Goldman Sachs to prevent management from “unfairly” distributing the funds to plan participants.
ATD’s letter further states, and this is where you should be concerned the proposed changes that the Board wants to make to your MONEY, hell they may have already done these things today because we haven’t heard what transpired at the meeting today. The Board has;
- Picked a company called Evercore to be the Trustee AND invest YOUR money. This after the investment committee under the chairmanship of Eric Gebaide (5 months with our company) interviewed four companies to find the one that fit us best, how the hell would he know.
- It is clear the Board is trying to mitigate their own liability and fiduciary risks with regard to investing YOUR money and throw the liability squarely on your shoulders.
- The costs to administer the plan will rise from $600k to somewhere north of $2.4 million
Basically the way we see this is that there will be no one back here associated with us that we can trust watching our future. Instead there will be some unknown company out of New York that we don’t know and we don’t trust in charge of our future. This Board has attacked men we look up to and respect like ATD and Bill Marsden and now they are messing with OUR MONEY and OUR FUTURE.
This is only the beginning folks, what’s next compensation? Bonuses? Only time will tell but as always we know that ATD stands with us as we stand with him. This is getting really old and we are losing patience with this Board. It is a credit to our PEOPLE that we have been able to conduct ourselves in a professional manner and take care of our customers over these past 10 months given all of the distractions this Board has given us.