{ "docId": "019dd923-622c-750b-8b98-ff42cd6c571b", "docSlug": "09bbf36d82e5", "documentTitle": "Avery Dennison Corporation (AVY)", "authorId": "54_Spruce_Point_Capital", "authorName": "Ben Axler", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2020-11-10 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 78, "pageCount": 89, "prevPage": 77, "nextPage": 79, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses excerpts from the company's own proxy statement and website to frame the auditor relationship as 'too cozy'.", "elementsJson": [ "headline_text", "callout_box", "paragraph", "footnote" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b98-ff42cd6c571b/78", "deckHref": "/decks/019dd923-622c-750b-8b98-ff42cd6c571b", "deckJsonHref": "/decks/019dd923-622c-750b-8b98-ff42cd6c571b.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-ff42cd6c571b#slide-78", "components": [ { "bbox": { "h": 0.03, "w": 0.15, "x": 0.05, "y": 0.45 }, "kind": "list", "text": "AUDITOR TENURE", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1a81ac60-02ad-4fa8-8e6a-961a02d92a76", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.18 }, "kind": "paragraph", "text": "Spruce Point has repeatedly warned to be careful when the auditor relationship is too cozy with management. We observe the current CEO, Chairman and President of Avery started his career at PricewaterhouseCoopers (PWC). According to Avery, PwC is “independent” and has served as auditor since at least 1960, but it cannot determine the exact year it began. Given the accounting anomalies we observe and Avery’s CEO and Chairman’s connections to the firm, we believe it is time for Avery shareholders to demand a new auditor to review its books and records.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "13f78670-3198-4c2a-8bfb-ef8ddbb378f6", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.45, "x": 0.05, "y": 0.49 }, "kind": "paragraph", "text": "PwC has been our independent registered public accounting firm since 1998 and served in that capacity during fiscal year 2019. Through its predecessor entities, the firm has served as our independent auditor since at least 1960, which was the first year our financial statements were subject to SEC reporting requirements. We have been unable to determine the exact year PwC began serving as the auditor for our company. PwC is very well-qualified to act as our independent registered public accounting firm and has a deep understanding of our operations and accounting practices. Some governance stakeholders have suggested that long tenure poses a risk to auditor independence. The Audit Committee believes, however, that PwC's years of experience auditing our company confers significant benefits, including the following:", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "df78e2a7-84bf-462b-a127-7505451d9fd1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.4, "x": 0.55, "y": 0.45 }, "kind": "paragraph", "text": "As chairman, president and chief executive officer, Mr. Butier is responsible for overseeing the company's global manufacturing operations, with the leaders of the company's businesses reporting to him. Mr. Butier joined Avery Dennison from PricewaterhouseCoopers in 2000 as director, finance of the former Office and Consumer Products North America division. Prior to becoming senior vice president and chief financial officer, he served from 2007 to 2010 as corporate vice president, global finance, and chief accounting officer. Prior to 2007, he held other senior leadership roles across the company, including finance positions in Label and Packaging Materials Europe and Retail and Branding Information Solutions, and general management positions in Retail Branding and Information Solutions. Mr. Butier graduated from Loyola Marymount University with a Bachelor of Science in Accounting degree.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e64b1f38-95e9-4309-9555-3c854656c631", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.15, "x": 0.55, "y": 0.85 }, "kind": "source-note", "text": "Source: Avery website", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a9473939-b616-459c-84cf-d97c9623040b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.2, "x": 0.05, "y": 0.75 }, "kind": "source-note", "text": "Source: Avery Proxy Statement", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "dd28ce37-bf04-4acc-9e51-2febdc9d1f23", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.45, "x": 0.315, "y": 0.045 }, "kind": "title", "text": "Time For Change of Auditor", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e5797e58-369b-47ce-8319-6a655edaa2ea", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "a5bd720d-77c5-4464-92aa-9b5847bf83bb", "evidence": "Contrasting the company's claim of auditor independence with the CEO's professional history at the auditing firm.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }