WASHINGTON, D.C.- The Hotel Employees and Restaurant Employees International Union (HERE) urged the board of directors of Boykin Lodging Co. to consider a possible sale or liquidation of the company, and in the meantime, to reform the companys corporate governance policies.
In a letter sent to Boykin Lodging directors, Matthew Walker, HERE senior vp, proposed several measures to improve shareholder value and management accountability at the company:
7 The formation of a special committee of independent directors to consider strategic options, including the sale, merger or liquidation of the company;
7 The redemption of Boykins poison pill, which was implemented without shareholder approval;
7 A requirement that at least two-thirds of Boykins directors be independent; and
7 The separation of the positions of Chairman and CEO to provide more independent oversight.
According to Walker, over the last several months, Boykin has cut its dividend by 22% and its shares have hit an all-time low. The company has been downgraded by a majority of covering analysts. (11/1/00)