Luby' Update
A shareholder proposal was passed at Luby’s on Monday, which declassified Luby’s board. From the 8-k:
On January 23, 2009, the Company’s stockholders approved the amendment to the Company’s Certificate of Incorporation proposed by the Board of Directors to eliminate the classified board structure pursuant to which the Board had been divided into three classes with the members of each class serving three-year terms. Each director, therefore, will serve the remainder of his or her current term and thereafter will be elected to one-year terms at each annual meeting of stockholders. Accordingly, from and after the 2012 annual meeting, the directors no longer will be divided into classes and each director will be elected to a one-year term expiring at the next succeeding annual meeting.
I am happy with this outcome, but would have liked it even better if the board was immediately declassified. At the same time, this removes a major roadblock in place for a change in control going forward, and I will take what I can get. With that said, I believe that Luby’s management team is capable and experienced. My only initial objection was with the company’s corporate governance in my initial write-up. While this recent declassification doesn’t change everything overnight, it is a step in the right direction in my view.