Todd Shipyards Chief and 4 Directors Resign
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Todd Shipyards said its embattled chairman and chief executive, Burton Borman, resigned Tuesday along with four of the company’s directors.
Borman had been battling dissident shareholders led by Omaha businessman J. Alan Mactier, who waged a proxy fight in September that resulted in dividing control of the company’s board.
Mactier’s group has advocated Todd’s selling all or part of the company to enhance shareholder value. Seattle-based Todd hired Salomon Bros. in July to recommend ways Todd could boost earnings and diversify out of defense-oriented businesses.
Todd also agreed to renegotiate employment contracts for Borman and Executive Vice President Stephen Silverman. Three directors resigned in June to protest the contracts that included “substantial benefits” and the leasing of expensive offices in Los Angeles at company expense. Silverman agreed to leave the company after its shareholders meeting in October, although he remained as an outside consultant.
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