Tuesday, March 6, 2012


I don't like the tone—or the underlining message—of this snippet from ITEX CEO Steve White in his annual letter to shareholders:
"We also operate in an environment of expanding stockholder rights in which any given shareholder can attempt to affect the role and focus of the board of directors and the direction of our company. To pressure boards, individuals can use the press to try to influence policy, campaign for the latest governance standards, recommend ways to disburse corporate cash, initiate litigation against directors, and seek control of a company through a variety of tactics."

Similar to other public companies, ITEX has not been immune from these actions. Whether motivated by reform or a self-serving agenda, these events have the effect of placing additional unproductive, non-business burdens on the board, and distracting management and our franchise network from the actual business of the company.