The leading specialty coffee retailer,
Green Mountain Coffee Roasters Inc.
) has restructured its board of directors and appointed Norman
Wesley, former chief executive of Fortune Brands, as the new
chairman of the board.
According to Reuters, Norman Wesley had already been working
as Green Mountain's independent director since August.
Earlier, Robert Stiller, founder and former chairman, and
William Davis, lead director, were removed from their respective
positions after allegations that they sold their shares to cover
margin calls when the trading window was closed, violating the
company's internal trading policy.
Green Mountain also appointed A.D. "David" Mackay as
independent Director. The interim chairman, Michael J. Mardy,
will continue as Audit Committee Chairman.
A.D. Mackay had played important roles in his illustrious
career. Before joining Green Mountain, he was the Chief Operating
) from 2003 to 2006. He was also the Chief Executive Officer of
the company from December 2006 to January 2011 and the company's
President from August 2003 to January 2011.
Mackay is being appointed at a time when the patents for the K
cups have expired. It is expected that Mackay with his vast
experience will help the company to find newer innovations
related to single cup brewers. Moreover, with his knowledge of
the international market, Mackay is expected to boost Green
Mountain's international presence.
Currently Green Mountain holds a Zacks #1 Rank (Strong Buy).
The company reported robust fourth quarter 2012 results. Adjusted
earnings (excluding amortization of identifiable intangibles) of
64 cents per share surpassed both the prior-year quarter earnings
and the Zacks Consensus Estimate of 47 cents by 36% on the back
of solid top-line growth, a lower tax rate and lower interest
expense. However, two of the company's patents expired in
September 2012, which negatively impacted its K-cup sales.
GREEN MTN COFFE (GMCR): Free Stock Analysis
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