Beaver Hollow Wellness (BHW) has voiced strong objections to Servotronics' (SVT, Financial) recent amended proxy statement, filed on April 22, criticizing the company's board for its focus on executive compensation rather than enhancing shareholder value. The conflict revolves around new clauses related to 'change of control' compensation, which BHW argues are designed to protect current executives rather than serve shareholder interests.
BHW's Chairman, Paul Snyder III, has called for shareholders to reject what he describes as the board's fear tactics and instead support BHW’s proposal for positive change. This plan advocates for replacing many directors to foster a culture of experience, independence, and accountability within Servotronics.
The contentious amendments suggest that major changes in board composition could activate provisions for accelerated equity awards and enhanced severance packages for existing executives. BHW criticizes this as an attempt by the board to deter shareholder-driven changes by emphasizing potential financial consequences for management.
BHW emphasizes a commitment to rebuilding Servotronics by implementing lean manufacturing, improving supply chain processes, and achieving zero-defect deliverability. Their vision also includes introducing oversight that aligns with shareholder interests, ensuring responsible capital deployment, and pursuing operational excellence. The group has put forward nominees with expertise spanning aerospace, finance, manufacturing, and governance to replace current board members.
