A. Schulman's new CEO starts year with six-point plan; proxy battle with Ramius continues

By Lisa Kerner

Charlotte, N.C., Jan. 3 - A. Schulman Inc.'s new chief executive officer Joseph M. Gingo announced his 100-day plan that addresses six primary "areas of transformation" across the company.

Gingo's plan calls for:

• More efficient and effective utilization of A. Schulman's North American manufacturing facilities;

• A focus on value-added products to drive growth in the polybatch and engineered compounds segments;

• Re-assessment of A. Schulman's North American automotive business to emphasize profitable areas;

• Suspension of further capital expenditures on the company's Invision PVC-free polyolefin compounds until the marketing strategy has been refined;

• Identification of additional efficiencies in the sales and administrative structure of European operations; and

• Ensuring that the best leadership team is in place to execute the company's strategy.

"While an A. Schulman board member, I was an active adviser to the company on its strategic direction; however, in my new role as CEO, I am excited to be taking the operational reigns and driving forward our strategy with a real sense of urgency," Gingo said in a company news release.

A. Schulman also addressed the hostile proxy contest with Ramius Capital Group LLC and the company's unsuccessful attempt to end the battle.

As previously reported, Ramius plans to replace A. Schulman board members James Karman and Gingo with its own nominees at the Jan. 10 annual meeting.

A. Schulman is seeking the re-election of Gingo, Karman, James A. Mitarotonda and additional independent board nominee Stanley W. Silverman.

The company said it offered to recommend the appointment of one Ramius nominee to the board for one year, with A. Schulman's support of the nominee's re-election as an incumbent for a three-year term the following year.

Ramius rejected the offer.

"Ramius does not have the interests of all stockholders at heart, evidenced by the fact that they continue to pursue a protracted and expensive proxy fight with no meaningful benefit to all stockholders, while ignoring the substantive measures taken by the company to enhance profitability, improve governance and deliver stockholder value," lead independent director Will Holland stated in the release.

The company has formed a special committee of five independent board members to review strategic alternatives, including a possible sale of the company.

Based in Akron, Ohio, A. Schulman manufactures and sells plastic resins and plastic compounds, including engineered flame-retardant compounds, thermoplastic elastomers and nylon compounds.

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