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XM Radio Board of Directors: Exit, Stage Left
"Heavens To Murgatroid!" (thank you, Snagglepuss)...how often do you ever hear of a Board Director parting ways from a sexy upstart new media company...stating reasons for the departure such as being "troubled about the current direction of the company" and having to express concern or dissent in a "vociferous manner", believing a "significant chance of a crisis (is) on the horizon"?
Yikes! Exit, stage left...
What does that mean for XM?
SEC filings often offer amazing insight. Here is one from just-resigned 5-year board member Pierce Roberts to XM Satellite Radio Chairman of the Board Gary M. Parsons:
Gary M. Parsons
Chairman of the Board
XM Satellite Radio Holdings Inc.
1500 Eckington Place
Washington, DC 20002
Dear Gary:
It has been my pleasure to serve on the Board of Directors of XM for more than 5 years. The company has achieved many notable successes and overcome numerous seemingly-insurmountable obstacles during this period. It has been great fun to have a minor role in helping you, Hugh and the XM team as the company has grown from its founding concept to become a major firm with rapidly growing numbers of subscribers. There is much in which to be pleased.
That said, I have been troubled about the current direction of the company and do not believe that it is in the best interest of the company's shareholders. For some time I have made my analyses and observations known in an increasingly vociferous manner to the Board and a number of senior managers of the Company. I am not having any useful effect and I care too much and believe in my own views too much to just "go along".
Given current course and speed there is, in my view, a significant chance of a crisis on the horizon. Even absent a crisis, I believe that XM will inevitably serve its shareholders poorly without major changes now. It is clear to me that I cannot be part of the solution and I will not be part of the problem.
Therefore, after a lot of thought and with a great deal of sadness, I tender my resignation to be effective immediately. Thanks and best wishes to the entire XM family.
Sincerely,
/s/ Pierce J. Roberts, Jr.
Pierce J. Roberts, Jr.
Why do so few boardmembers resign over differences with management? Usually when board members leave, it's done quietly so as to not disrupt Wall Street. Plus, of course, most board members are often hand-picked appointees so the agreement potential is higher. So rudeness is normally avoided.
But a "vociferous" (to use Roberts' word above) difference within the ranks of XM's Board? What does that mean for XM in the coming months?
SEC filing
posted by Unknown @ Thursday, February 16, 2006,
