Rowan shareholder takes board to task for 'broken policies'

By Lisa Kerner

Charlotte, N.C., March 26 - Steel Partners II expressed concern over Rowan Cos., Inc.'s significant inventory write-offs in the fourth quarter of 2008, "excessive" professional fees paid in connection with the suspended LeTourneau Technologies, Inc. monetization process and "unusual and improper" compensation and severance arrangements with some executive officers including the retiring chief executive officer and the new CEO.

The shareholder made its remarks in a March 26 letter to Rowan included in a schedule 13D/A filed on Thursday with the Securities and Exchange Commission.

Rowan's appointment of Steel Partners' designee to the company's board in January as part of a settlement agreement was a step in the right direction, the shareholder said.

However, according to Steel Partners, the "appointment alone will not fix the embedded, broken policies that negatively impacted" Rowan's 2008 bottom line and "potentially its future prospects."

"While we recognize the CEO is new to the job, the board is not," Steel Partners said in its letter to the Houston-based contract drilling services company.

"There is no time for a learning or honeymoon period - proper oversight by the Rowan board is required now!" Steel Partners said.

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