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  "documentTitle": "Weis Markets, Inc. (WMK)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-09-05 00:00:00",
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  "pageNumber": 38,
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  "notes": "The slide uses a table to highlight the lack of equity ownership among the executive team and board members.",
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      "kind": "callout",
      "text": "Why would any shareholder ever want to own stock in a company where the culture has a complete disregard for shareholder value creation, and no one is incentivized to perform?",
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      "text": "A Terrible Non-Equity Culture\n- Weis states bluntly the following: \"The Compensation Committee does not believe that equity-based incentives are a valuable incentive for employees of the Company\" (1)\n- As a result, the entire executive team and Board (ex: Chairman/CEO Weis) own a laughable 17,604 shares (approximately $1m). Furthermore, there are no equity or option incentive programs for any of Weis’ 23,000 full and part-time employees to incentivize value creation",
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      "text": "Terrible Capital Allocation\n- Weis has a flexible capital structure with $93m of net cash, an underutilized revolver, and free cash flow. Yet it pays just a modest 2% dividend, and last raised the dividend 1c per quarter 7 years ago\n- The Company hasn't repurchased stock of any materiality in almost 18yrs, even during periods when its stock remained depressed",
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      "text": "Share Ownership: 17,604",
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      "text": "Why would any shareholder ever want to own stock in a company where the culture has a complete disregard for shareholder value creation, and no one is incentivized to perform? Weis neither rewards investors with favorable return of capital policies, nor its employees for their dedicated service.",
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      "text": "\"The Compensation Committee does not believe that equity-based incentives are a valuable incentive for employees of the Company\" — Weis Proxy Statement, p. 8, April 2018",
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      "text": "1) Weis Proxy Statement, p. 8, April 2018",
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      "text": "Executive and Board Member | Share Ownership | Options\nKurt Schertle / COO | 1,000 | 0\nScott Frost / CFO | 2,568 | 0\nDavid Gose II / VP Real Estate | -- | 0\nHarold Graber / SVP Real Estate | 2,036 | 0\nDennis Hatchell / Director | 5,000 | 0\nEd Lauth III / Director | 2,000 | 0\nGerald Silverman / Director | 5,000 | 0\nTotal Executive and Board Ownership | 17,604 | 0",
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      "kind": "title",
      "text": "Weis Cares Nothing About Motivating Employees Or Shareholder Value Creation",
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