By Editor & Publisher
With the possible sale of all or parts of its business looming, Knight Ridder revealed Thursday that it has cancelled its annual shareholders meeting scheduled for April 18. The news came in a filing with the U.S. Securities and Exchange Commission (SEC) after the markets closed.
During a board meeting on Jan. 29, directors voted to cancel the shareholder meeting until "a future date, to be determined," said the filing. Under the company's former bylaws, the board had to set the date and time for shareholder meetings in April or May. That requirement has been removed giving the board more flexibility.
Additionally, members voted to close any loopholes that might prevent Knight Ridder executives from receiving compensation should a sale of the company occur.
An "Executive Income Security Agreement" provides benefits for senior management in the event there is a change of control and executives are terminated "without cause" or for "good reason."
The board voted on Sunday to amend the agreement "in order to resolve a potential ambiguity." That grey area involves if the executives are eligible for retirement or early retirement, which could prevent them from collecting benefits.
The board authorized the company to clarify the agreement to ensure executives are compensated regardless if they are eligible for retirement. A full copy of the text is found here http://www.knightridder.com/investor/sec_filings.html
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1 comment:
As usual, taking care of the guys at the top while shoving the folks at the bottom out the door, or digging into their benefits.
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