Sealaska Shareholders Meeting 2014 By Dominic Salvato July 09, 2014
Things went pretty much managements way as usual. The Resolution to limit discretionary voting failed as expected. Resolutions require 51% of the entire twenty two thousand shareholder vote. With only 60% of shareholders voting non voters work in managements favor. A few short years ago management sponsored a resolution to devalue the shares and admit new shareholders, in spite of two Sealaska surveys of shareholders rejecting the idea of devaluing the shares. Shareholders had never received an average of even three dollars a day in Sealaska's three and a half decade history. Shareholders were reluctant to accept less especially when the promise of ANCSA had never come close to expectations, plus the fact shareholders had the right to gift shares. None voting shareholders wouldn't allow the resolution to pass so management applied to Congress for a special dispensation allowing only 51% of the voting shareholders to approve, opening the door for as little as 25% of shareholders to pass the resolution, It passed. One and a half million dollars was spent in travel and hotel expenses for boardmembers and executives, the hiring of proxy workers and media ads on a campaign to enlist new shareholders. Dividends for new shareholders has never amounted to more then a few cents per day ever since. New shareholders don't receive 7(i) revenue sharing from other corporations. Back to the meeting. The way the board members and executives congratulated each other and recognize each other in the audience one would think it was a banner year for shareholder dividends. It seemed surreal in light of at least a thirty-five million dollar loss last year. Copy's of the Juneau Empire's (June 26th) editorial calling for a changing of the guard was passed out by concerned shareholders, and mentioned only in independent candidate speeches. Sealaska's management ace in the hole was with Byron Mallotts resignation from the board allowed management to spread the discretionary votes to three endorsed candidates instead of four. This ensured only one seat would be lost to an independent instead of two. Rosita's blamed environmentalists lying propaganda for stalling the Sealaska's land allotment or the Sealaska bill. It was comical due to the fact that nine communities oppose the bill along with hundreds of scientists and origination's around the world. I thought to myself, oh no, nine communities in south east Alaska inhabited by....by environmentalists! Any mention of short comings by the corporation were considered "negative" in the running blog supplied to online shareholders and not allowed. In the course of mentioning opposition to the Sealaska bill on the blog, management claimed there is no active opposition to the bill at this time. The corporation went on to announce corporate promotions? And express gratitude to retiring CEO Mr.McNeil and Executive VP Richard Harris. More time was spent handing out door prizes then allowed in candidates limited 5 minute speeches. Cash prizes were handed out with the comment to make good use out of it at bingo or the casino. Once again ignoring the sensitivities of the many shareholders struggling to survive. Our new CEO announced it will be a while before shareholders see any dividends from operations. This fact is upsetting to most shareholders due to the fact managements top fifty managers and boardmembers have passed the fifty million dollar mark in compensation since the start of the recession. During the question and answer phase at the end of the meeting, the question of did shareholders pay a half million dollar severance package for Mr.McNeil to go along with his three hundred and fifty thousand dollar salary? The arrogant answer was "look it up in next May's proxy statement." Sensing this another boardmember added management lived up to it's contract. Sounds similar to Sealaska's excuse for under bidding the Hawaii construction job by more than twenty million dollars. The fact remains with discretionary voting, where the unused votes are used at the boards discretion, shareholders have very little or no chance of implementing any changes. For the near future Sealaska's homeless tribal member shareholders will remain homeless. A new generation of single parent Sealaska tribal member shareholders will remain in welfare lines. Families of deceased tribal member shareholders without the means for a decent funeral will continue to request assistance from charities and Sealaska's money losing managements top executives will drain off a half million dollars per month in compensation. Shareholders with little or no money can't challenge the boards ever changing by-laws and unlimited bank account. Without help from the general public in demanding ANCSA election reform nothing will ever change. Sealaska's elite rich will get richer, and the seventy percent of Sealaska's shareholders living below the poverty line, well you know the rest of that story. Dominic Salvato Received July 08, 2014 - Published July 09, 2014
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