Lawndale Capital Expresses Concerns Over Compensation of Mace Security's (MACE) CEO
In an 13D filing after the close Wednesday on Mace Security International (Nasdaq: MACE), Lawndale Capital Management disclosed a 6.7% (1.02 million share) stake in the company. The investment firm said it has been in contact with the company regarding alternatives the company could employ to maximize shareholder value. The group communicated concerns with the company's Compensation Committee related to CEO Louis D. Paolino's compensation agreement. The group is requesting a meeting before any renewal or extension of Mr. Paolino's employment agreement (Aug 12th).
From the 'Purpose of Transaction' section of the filing:
"The Filers ("Lawndale") have been and may continue to be in contact with Mace Security International's ("MACE") management, members of MACE's Board of Directors, other significant shareholders and others regarding alternatives that MACE could employ to maximize shareholder value.
In addition, Lawndale's President, Andrew Shapiro, has communicated a summary of his concerns with MACE Compensation Committee (the "Committee") members regarding certain aspects of MACE's compensation agreement with its Chairman & CEO, Louis D. Paolino, Jr., as well as criteria used by the Committee in determining performance bonus payments.
Mr. Shapiro has requested a meeting to share his concerns more fully with the Committee prior to its deliberation on any renewal or extension of Mr. Paolino's employment agreement that, according to MACE's 10-K, is set to expire in a few weeks, on August 12, 2006.
Lawndale believes the public market value of MACE is undervalued by not adequately reflecting the value of MACE's personal defense, car/truck wash (and underlying real estate) and corporate security assets.
Lawndale acquired the Stock solely for investment purposes, and Lawndale may from time to time buy or sell the Stock at its discretion."
From the 'Purpose of Transaction' section of the filing:
"The Filers ("Lawndale") have been and may continue to be in contact with Mace Security International's ("MACE") management, members of MACE's Board of Directors, other significant shareholders and others regarding alternatives that MACE could employ to maximize shareholder value.
In addition, Lawndale's President, Andrew Shapiro, has communicated a summary of his concerns with MACE Compensation Committee (the "Committee") members regarding certain aspects of MACE's compensation agreement with its Chairman & CEO, Louis D. Paolino, Jr., as well as criteria used by the Committee in determining performance bonus payments.
Mr. Shapiro has requested a meeting to share his concerns more fully with the Committee prior to its deliberation on any renewal or extension of Mr. Paolino's employment agreement that, according to MACE's 10-K, is set to expire in a few weeks, on August 12, 2006.
Lawndale believes the public market value of MACE is undervalued by not adequately reflecting the value of MACE's personal defense, car/truck wash (and underlying real estate) and corporate security assets.
Lawndale acquired the Stock solely for investment purposes, and Lawndale may from time to time buy or sell the Stock at its discretion."
posted by Lon at 12:40 PM
0 Comments:
Post a Comment
<< Home