May 24, 2013: YRCW board member Harry Wilson is getting paid $250,000 per month, since February 2013, and may get a lot more. Wilson was appointed to the YRCW Board by the Teamsters Union leadership.
We've all heard the expression "follow the money."
This information is tucked away in a February YRCW filing with the Securities and Exchange Commission. The filing states that, "On Feb. 20, 2013, we entered into an Advisory Agreement with MAEVA Group, LLC ("MAEVA"), a company owned and controlled by Harry Wilson and of which Mr. Wilson is Chairman and CEO. Mr. Wilson is a Series A Director of the Company appointed by IBT."
The filing goes on to state that, "The Advisory Agreement calls for MAEVA to provide advisory, analytical, consulting and other services to us in connection with one or more potential transactions and/or other strategic initiatives that we may elect to pursue from time to time." As compensation for its services, MAEVA is entitled to receive $250,000 per month (starting Feb. 1) for at least the next four months plus potential completion fees not to exceed $5.5 million in the aggregate.
We have not been able to learn what "strategic initiatives" Mr. Wilson is working on for this fee, but we note that YRCW's big "strategic initiative" in this period seems to be the clumsy bid to buy ABF for $461 million.
Since Wilson was appointed to the Board by the Hoffa administration, surely Hoffa can explain what this lucrative consulting is all about, and if it has any possible relationship to the plan for a company, which cannot live up to the Teamster contract, to go on a buying spree.