Kmart to Show Board Members the Door
By George Anderson
The Detroit News is reporting today that Kmart plans to replace its current nine-member Board of Directors when the company emerges from Chapter 11 bankruptcy protection on April 30.
The lowlights of the current board are numerous. Hundreds of store closings, thousands of employee job cuts, shareholder losses in the billions and $28 million in questionable loans to former executives has earned Kmart’s Board a well-deserved reputation for ineptitude.
There has been no announcement as to how this action will affect Jim Adamson, the nonexecutive chairman of Kmart.
Moderator’s Comment: What level of responsibility does
the Board of Directors bear for Kmart’s problems? How much influence will a
new board have over the future fortunes of the company?
Our first reaction to this report was “What took so long?”
[George
Anderson – Moderator]