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Technology Stocks : Zenith - One and Only -- Ignore unavailable to you. Want to Upgrade?

To: Dennis W who wrote (3689)	12/20/1997 10:49:00 AM
From: Robert Utne	Read Replies (2) \| Respond to of 6570

CEO status? Noticed in today's "Investor's Business Daily" that Al Dunlap says he won't take the CEO job at Waste Management due to the "poor state of the board there". He called acting CEO Steve Miller and the board "professional directors". As you recall, Dunlap helped to triple the price of SOC within one year of becoming Sunbeam's CEO. Apparently, Dunlap is looking for a new challenge. What would it take to get Dunlap to head Zenith? My read is that he'd want: 1. an entirely new board of directors composed of active and independent participants in the review of company strategy and operation's plans. Board members would be required to personally own substantial shares of Zenith and would be compensated on the basis of company performance. Certainly, LGE would have representation on the Board. 2. assurances from LGE that he would have total freedom to function as an independent CEO. 3. excellent compensation package with maximum rewards based on stock performance. Assuming that Dunlap could perform a similar turn around at Zenith with a similar stock performance, the advantages to LGE would be: 1. LGE becomes 57% owners of a corporation with a market capitalization of almost $2 billion versus its present capitalization of about $500 million. 2. Zenith becomes a stronger partner and better customer for purchasing LGE manufactured products to be resold in the US and rest of the world under the Zenith brand. 3. A financially strong and independent Zenith will attract more key partners allowing LGE to lead in the development of an alliance of media moguls (News Corp and/or Time Warner, Disney and/or CBS, etc.) and telecommunications giants (Americast, etc.) with LGE/ZE being their key CE suppliers. Conversely, if the LGE-controlled board elected a LGE employee to serve as Zenith's new CEO, investor confidence in ZE would disappear and all advantages of US branding and distribution would be lost. I can't think of a more important priority for both LGE and Zenith than getting someone like Al Dunlap to be Zenith's new CEO, prior to the start of the International CES.