Barington Capital’s James Mitarotonda sent a letter to Ameron International’s (AMN) board to oust CEO James Marlen.
“It appears to us that the primary achievement of Mr Marlen – who has earned over $66 million in total compensation during his 16+ years as CEO – has been creating wealth for himself and his family”, Mitarotonda wrote.
The letter said all three of Marlen’s sons hold senior positions at Ameron International and their employment should have been disclosed in a timely manner. Mitarotonda complained that Marlen’s earnings are 72% higher than the average CEO in his peer group.
Barington’s Mitarotonda blamed the CEO for running Ameron by “fear and intimidation”. He noted that the atmosphere at Ameron stifles the suggestion of new business initiatives and healthy discussion and debate about Mr. Marlen’s business proposals.