A Green Mountain Coffee Roadsters Inc director who was caught up in a steep decline in company value has resigned, the Waterbury company announced Monday. William D Davis provided notice to GMCR of his resignation from the Board of Directors effective immediately.
Davis has sold 608,000 shares of GMCR stock this year, as he and former chairman and company founder Bob Stiller were forced to sell large blocks of their own shares to cover outside investments. Both were demoted from their previous board positions on May 8. Stiller remains on the board.
Davis sold 400,000 shares on May 4 and 148,000 on May 7. Stiller sold 5 million shares on May 7. Because of the selloff and a disappointing quarterly report, half the value of the company was wiped out overnight. The stock has plummeted from a high of$115.98 last September to a low of $17.11 in July. As of the close of business Monday, the stock was at $24.47. Concern over corporate governance and the expiration of Keurig patents this September has caused investors to lose confidence in the company, while short sellers have made a killing since last November, even while the company continues to grow and show a profit. The company also announced upon the release of its thrid quarter report in July that it is repurchasing 500,000 shares. (SEE STORY on Q3 REPORT)
In a statement regarding Davis, the company said: "Mr Davis has been a valued member of the Company’s Board for nearly 20 years, and during his tenure the Company has benefited greatly from his diverse consumer products background, extensive understanding of the Company’s business and operations and senior management experience, among other things.Mr.Davis confirmed that his resignation was for personal reasons, and was not due to any disagreement with the Company on any matter relating to the Company’s operations, policies or practices." (SEE STORY)
In response to Davis’s resignation, the board has reduced its size from nine to eight members. Davis, the board's previous Lead Director,served on no board committees at the time of his resignation.
From GMCR Web site:
Robert P. Stiller , founder of the Company, served as its President and Chief Executive Officer since its inception in July 1981 until May 2007. Mr. Stiller also served the Company as Chairman of the Board of Directors from May 2007 until May 2012. Mr. Stiller's qualifications to serve on your Board include his intimate knowledge of your Company, as its founder, as well as his vision and foresight in understanding the trends in the marketplaces most affecting your Company.
View Transactions
Date
Type
Shares Traded
Price Range
May 7, 2012
Sell
5,000,000
24.68
Mar 27, 2012
Disposition (Non Open Market)
19,065
51.91
Feb 24, 2012
Sell
500,000
66.68
Feb 15, 2012
Sell
500,000
65.94
Nov 29, 2011
Disposition (Non Open Market)
20,000
48.92
Nov 23, 2011
Disposition (Non Open Market)
200,350
50.13
Aug 4, 2011
Disposition (Non Open Market)
18,050
107.43
Aug 4, 2011
Sell
500,000
107.43
May 5, 2011
Sell
310,000
68.34
May 5, 2011
Option Execute
110,000
4.24 - 30.79
Mar 15, 2011
Disposition (Non Open Market)
11,144
58.99
Feb 10, 2011
Disposition (Non Open Market)
6,360
41.36
Jul 8, 2010
Disposition (Non Open Market)
2,650
26.48
Jun 24, 2010
Disposition (Non Open Market)
965
26.09
May 27, 2010
Disposition (Non Open Market)
8,700
24.24
Mar 26, 2010
Disposition (Non Open Market)
2,710
93.13
Mar 12, 2010
Disposition (Non Open Market)
837,930
92.65
Dec 10, 2009
Disposition (Non Open Market)
280
63.47
Dec 7, 2009
Disposition (Non Open Market)
5,000
60.39
May 22, 2009
Disposition (Non Open Market)
700
79.78
May 4, 2009
Sell
200,000
73.22
Mar 11, 2009
Disposition (Non Open Market)
5,000
37.81
Mar 5, 2009
Sell
64,400
40.21
Mar 4, 2009
Sell
135,600
40.17
Dec 11, 2008
Disposition (Non Open Market)
280
35.51
Dec 1, 2008
Disposition (Non Open Market)
2,000
36.45
Nov 25, 2008
Sell
32,632
32.96
Nov 24, 2008
Sell
67,368
33.25
Nov 21, 2008
Sell
162,553
30.25
Nov 21, 2008
Option Execute
177,229
6.65 - 7.50
Nov 19, 2008
Sell
68,573
31.00
Nov 18, 2008
Sell
166,400
31.20
Nov 17, 2008
Sell
65,027
31.83
Nov 13, 2008
Disposition (Non Open Market)
500
31.90
May 16, 2008
Sell
64,630
39.45
May 14, 2008
Sell
75,000
38.96
May 12, 2008
Sell
14,100
38.03
May 8, 2008
Sell
109,200
38.50
May 6, 2008
Sell
37,070
39.43
May 6, 2008
Disposition (Non Open Market)
627,063
39.21
May 5, 2008
Disposition (Non Open Market)
8,905
37.45
William D. Davisis the Vice Chairman of the Board of Directors of Learning Care Group, Inc., a provider of early education and care services to children primarily under the age of 12. He was President and Chief Executive Officer, and a Director from July 2002 until September 2010. Mr. Davis's qualifications to serve on your Board include a diverse consumer products background, an extensive understanding of your Company's business and operations and significant senior management expertise.
View Transactions
Date
Type
Shares Traded
Price Range
May 7, 2012
Sell
148,000
25.17
May 4, 2012
Sell
400,000
25.01 - 25.33
Feb 27, 2012
Sell
35,000
66.37
Feb 23, 2012
Sell
15,000
69.49
Feb 7, 2012
Automatic Sell
10,000
68.70
Oct 27, 2011
Option Execute
21,600
6.09 - 9.14
Aug 9, 2011
Option Execute
81,000
2.74 - 4.24
May 5, 2011
Sell
40,000
68.34
Jun 4, 2010
Option Execute
18,225
24.12
Nov 28, 2008
Buy
1,500
36.21 - 36.35
Nov 28, 2008
Buy
1,500
36.55
Source: GMCR, August 13, 2012; Vermont Business Magazine.