{ "docId": "019dd923-622b-71dc-a6d9-b06e1e87f57d", "docSlug": "0d9a92f4ecfe", "documentTitle": "Office Depot, Inc. (ODP)", "authorId": "03_Starboard_Value", "authorName": "Starboard Value", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2013-08-02 00:00:00", "orientation": "landscape", "aspectRatio": 1.2941177, "pageNumber": 40, "pageCount": 63, "prevPage": 39, "nextPage": 41, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 1, "notes": "Uses a 'FAILED' callout to emphasize the breach of stated policy.", "elementsJson": [ "headline_text", "bullet_list", "paragraph", "callout_box" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6d9-b06e1e87f57d/40", "deckHref": "/decks/019dd923-622b-71dc-a6d9-b06e1e87f57d", "deckJsonHref": "/decks/019dd923-622b-71dc-a6d9-b06e1e87f57d.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6d9-b06e1e87f57d#slide-40", "components": [ { "bbox": { "h": 0.05, "w": 0.15, "x": 0.64, "y": 0.2 }, "kind": "callout", "text": "FAILED", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c7fbead0-dd9c-4bea-8e33-e231bde776df", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "ISS states Office Depot's Board structure is of \"HIGH CONCERN\"", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-e6ee-7118-86fe-fa8e0e57c811", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.84, "x": 0.08, "y": 0.49 }, "kind": "list", "text": "Consolidating the role of CEO and Chairman goes directly against ISS' recommendation especially when less than 2/3 of the Board is considered independent.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "049b5258-9be8-473e-a570-8a4930cb7d3c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.84, "x": 0.08, "y": 0.44 }, "kind": "list", "text": "Yet the reality is that upon assuming the CEO role, Mr. Austrian has continued to serve as Chairman.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "39ca72d7-76b7-4f5a-b6a5-9e8d235af7a1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.84, "x": 0.08, "y": 0.63 }, "kind": "list", "text": "The reality however, is that Office Depot's lead director, Scott Hedrick, has been on the Board for 22 years. Given that length of time, we seriously question his true independence.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bdd139cc-ea83-4b99-ad3a-50d263be96f4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.84, "x": 0.08, "y": 0.28 }, "kind": "list", "text": "After the resignation of the former CEO, Steve Odland, and Mr. Austrian becoming interim CEO and Chairman, Office Depot stated the following in its 2011 proxy: \"in the future, consistent with the Company's Corporate Governance Guidelines it is the Board of Director's intention to separate the positions of Chair and CEO and that the position of Chair shall be held by an independent director on the Board of Directors.\"", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d09f65d7-7099-43b6-a130-f56ffc0f5496", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.84, "x": 0.08, "y": 0.56 }, "kind": "list", "text": "Yet, instead of satisfying shareholder concerns, Office Depot instead claims that a combined CEO and Chairman with an \"independent\" lead director serves the best interests of its shareholders.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "df2c9ec5-1434-4e71-8d1e-dd63c6573cba", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.78, "x": 0.11, "y": 0.71 }, "kind": "paragraph", "text": "ISS Conclusion: ISS states Office Depot's Board structure is of \"HIGH CONCERN\"", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "073743bb-c8ce-417f-9086-1bc959929455", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.81, "x": 0.11, "y": 0.79 }, "kind": "paragraph", "text": "Continuing to allow Mr. Austrian to serve in the combined CEO and Chairman role, especially without a truly independent lead director, goes directly against the wishes of shareholders and ISS best practices", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "42ed5c59-100a-4437-a392-d886cb2590a1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.45, "x": 0.11, "y": 0.2 }, "kind": "paragraph", "text": "Shareholder Concern #2: The combined role of the Chairman and CEO", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9c0758b3-7db4-43ea-b32f-7206264b3d43", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"in the future, consistent with the Company's Corporate Governance Guidelines it is the Board of Director's intention to separate the positions of Chair and CEO and that the position of Chair shall be held by an independent director on the Board of Directors.\" — Office Depot 2011 Proxy", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-e6ee-7118-86fe-fda006b05925", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.2, "x": 0.08, "y": 0.92 }, "kind": "source-note", "text": "Source: ISS Proxy Papers, ODP SEC filings.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2c1a0b05-3e32-4cea-ba3b-7d63b3487c0f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.84, "x": 0.08, "y": 0.09 }, "kind": "title", "text": "Office Depot’s Board Continues to Also Ignore the Concerns of Its Shareholders Regarding Compensation and Board Structure", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4b7502c4-8bf2-4526-838b-b812f7a0413d", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "4b34e0c6-0bec-457f-8c08-5b6346737d1f", "evidence": "Contrasting the company's stated proxy intention with the current reality of the CEO/Chairman role.", "confidence": 0.9 } ], "arcBeats": [ { "to": 41, "from": 3, "beatId": "7d75cf84-de72-412e-8648-8a7f02f1a83b", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "The Monster", "beatSlug": "overcoming-monster-the-monster", "evidence": "Criticisms of the current board and management, highlighting their lack of retail experience and poor governance practices.", "position": 0, "confidence": 0.8, "parentBeatName": "Hook", "parentBeatSlug": "hook" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }