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Hydrothermal Graphite Deposit Ammenable for Commercial Graphene Applications
Message: A good deal for two
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Yesterday I was awakened to the news that Mr. Aubrey Eveleigh is no longer the CEO of Zenyatta. As one of the Zenforwarders, I have been hoping for new leadership for a while. However, I personally find this latest action a continued act of disrespect to the shareholders. First the good news, Mr. Keith Morrison was able to remove Mr. Eveleigh from the CEO position without implementing the change of control clause in his contract that would require a $900,000 payment within 15 days. Mr. Morrison was able to negotiate this clause away by offering the following terms to Mr. Eveleigh
Let’s be really clear, Mr. Eveleigh knows that most shareholders find him distasteful. He has been paid well to be a leader of Zenyatta, yet has not engaged with shareholders, not responded to letters, not developed a plan or any of the basic activities that I would expect from a junior staff member. To be fair, under Mr. Eveleigh’s leadership we found a world class deposit. But, also under his leadership we are in a place of crisis that requires someone with creative leadership skills to see this crisis through. So to remove Mr. Eveleigh from the CEO, Mr. Morrison protected Mr. Eveleigh from any possible action from the dissident group who will soon control the board and will be in a position to uncover the truth of Mr. Eveleigh’s leadership and the true state of the company we have high hopes in. Even if the dissident’s find skeletons in the closet, Mr. Eveleigh’s termination contract of $900,000 is now guaranteed thanks to this "reorganization". This type of action feels rather reactionary and based on fear. If Mr. Eveleigh has led ZEN with integrity and skill, why would he want to change his termination clause to now read that he receives it whether cause is found or not? If there is any possibility that Mr. Eveleigh could be terminated with cause, why would Mr. Morrison make this agreement to place extra burden on the company? Furthermore, let’s be clear. This press release was part of the negotiated agreement. Mr. Eveleigh did not step down. He was fired, otherwise that $900,000 termination buyout would not have been considered. We can’t fault Mr. Eveleigh for loving money, but we also shouldn’t honour him as a man who gallantly stepped aside for the greater good. Mr. Eveleigh was fired for poor performance and dismal leadership and this buyout was the best deal that Mr. Morrison could make. Mr. Morrison was more fearful of funding a $900,000 buyout for Mr. Eveleigh’s severance than he was to hamstring the company with further obligation to Mr. Eveleigh. According to Mr. Morrison this deal was struck to help the company through succession planning. Now in my opinion, there is benefit to receive some input from Mr. Eveleigh. However, I would like an independent perspective to evaluate Mr. Eveleigh’s performance before I trust the opinion shared by Mr. Morrison in this press release. Perhaps Mr. Eveleigh’s track record with government agencies, local authorities and communities is on par with his track record with shareholders? One other aspect of this press release I find disrespectful is the notes of high praise that Mr. Morrison uses to describe himself since our new executive CEO likely wrote the article. For this one action of removing Mr. Eveleigh as CEO, Mr. Morrison says he has demonstrated the following qualities: “very pleased with Keith’s contribution” “Highly respected”, “innovative leader with vision, backed by strong technical knowledge”. These may be descriptions of Mr. Morrison’s past, but, to suggest that this termination is a prime example of innovative leadership and that the company is now pleased with his contribution isn’t obvious from where I am sitting. In conclusion, I find that this latest action from our Board is a rather desperate attempt to show any kind of leadership to salvage the promise of a reorganization of the company. Mr. Morrison had to remove Mr. Eveleigh yet we are stuck with very unfavourable terms. Mr. Eveleigh “stepped aside” so that his friend Mr. Morrison could continue as executive chairman. Together Mr. Morrison and Mr. Eveleigh hope they have done just enough that you would let them continue for a few more years. Their hope together is that you would overlook the details and sign on for more years of their inspired leadership that continues to be a good deal for those at the top, but not the true stakeholders of ZEN – you and me. Is my opinion harsh? Possibly, but given the strength of support we are hearing from almost every shareholder as the ZENforward team, I have to believe that management is just as aware that their days are numbered. So they did what they felt needed to happen. Protect their paychecks and make it just that much harder to take ZENforward when we win. I would suggest that leadership with integrity would have picked up the phone and worked with the actual ZENforward team who represent all shareholders so that together we could come to a solution that would be best for all. In the process all of our efforts could be directed on building a company instead of winning a campaign. In the process Zenyatta would not have to add a further bill that continues to grow and may reach up to $300K to pay for this proxy battle. The good news is that the ZENforward team are working for you and not just for their own contracts. What will be best for all is coming very soon. Vote YELLOW. Colin |
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