NEW YORK, NY / ACCESSWIRE / April 13, 2017 / Yesterday, Ephraim Fields of Echo Lake Capital issued the following letter to certain members of the Board of Directors of Command Center Inc.:
To: John D. Stewart - Minot, ND
Frederick J. "Bubba" Sandford - Lakewood, CO
John M. Schneller - Bedford, NH
We are gravely concerned about the revelation that the Board of Directors of Command Center Inc. (OTCQB: CCNI) has decided to delay the previously announced shareholder meeting that was scheduled to occur next month. We believe this decision is yet another example of how you are putting your own self interests ahead of the best interests of the company's shareholders.
As you are aware, many of the company's large shareholders are extremely dissatisfied with your performance. Based on what we consider to be your lack of relevant experience, your ever increasing compensation, and, most importantly, the poor performance of CCNI's stock price, we understand this investor outrage. We firmly believe that if the shareholder meeting were to be held next month (as had been originally planned), that all three of you (and perhaps others) would have been voted off the Board by shareholders. We can't help but wonder if your desire to keep your Board seat (and the generous compensation associated with it) and avoid the potential embarrassment of being thrown off the Board was largely responsible for the decision to delay the shareholder meeting.
We are also troubled by the lack of transparency you continue to provide to shareholders. We fail to understand why you didn't clearly disclose that you were canceling the May shareholders meeting and delaying it until a date that has still not been disclosed. The only reason this information came to light was because a shareholder asked about the meeting on yesterday's earnings call. We are disturbed that you apparently either do not realize that delaying a shareholder meeting is a material event that should be clearly communicated to shareholders, or you don't care enough about what shareholders think to keep them updated on material events occurring at the company.
In 2016, CCNI Board Members were paid a total of $195,000 and the CEO's compensation increased by 40%, which seems excessive to us considering in that same year the company only made $760,000, CCNI's stock lost 28% of its value and the Russell 2000 Index was up 20%.
Based on the voting results from the last shareholders meeting, the company's continued disappointing performance, and our public letter to you last month, it seems rather obvious to us why you are depriving shareholders of their right to vote on your Board membership next month.
Sincerely,
Ephraim Fields
Contact:
Ephraim Fields at (212) 251-3381
SOURCE: Echo Lake Capital
ReleaseID: 459596
