Board Members Fumble to Firing of CEO of Private Family Business and Everyone Suffers
Most people who serve on a board of directors feel that they are anonymous and like to keep it that way. The recent story that will not go away about the company, Market Basket, is the firing of the CEO with 49.5% ownership of the company. It goes to show you that being diligent about decisions made at the board of directors level have far reaching affects on not just shareholders and the CEO but customers and employees as well and, in this case, the Governor of Massachusetts who stuck his nose in the squabble.
WCVB-TV in Boston reports “Three members of Market Basket’s board of directors are pressing the feuding shareholders to resolve their dispute to help the beleaguered supermarket chain resume normal operations.
The directors said Saturday that 25,000 workers and two million customers “shouldn’t be held hostage for a business deal between shareholders.”
Their statement came a day after fired CEO Arthur T. Demoulas rejected an offer from the directors to let him and his former management team help restore normal operations, but not take control.
A spokeswoman for Arthur T. Demoulas called the offer an attempt to have him stabilize the company while they consider selling it to another bidder. Demoulas had offered Sunday to return as CEO while sales talks continue.
Demoulas was fired in June by the board, which has been controlled by his rival cousin, Arthur S. Demoulas.”
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