Essex Rental Corp. (Nasdaq: ESSX) (“Essex” or the “Company”) today announced a number of changes aimed at maintaining strong corporate governance practices and reducing corporate expenses.
Nick Matthews, Essex’s Chief Executive Officer, stated, “The steps that the Board has taken are consistent with our commitment to maintain strong corporate governance practices and reduce costs, and will further align our Company’s leadership with the interests of our investors. We anticipate realizing approximately $500,000 in annualized cost savings as a result of these changes.”
The following changes have been made as a result of investor feedback and our own continuing corporate governance assessment and review:
- The Strategic Planning and Finance Committee has been disbanded;
- The agreement with Hyde Park Real Estate, LLC to lease office space in New York City will not be renewed;
- The number of directors comprising the Board has been reduced from six to five for the foreseeable future, subject to continuing evaluation of the Board’s needs and composition;
- Compensation to Board members will be paid half in common stock and half in cash, rather than all cash, as has been the historical practice; and
- The Board has elected Bill Fox to chair both the Nominating and Governance Committee and the Compensation Committee.
The Company also announced that it has determined to not continue to pursue a sale or other strategic alternative for its operating subsidiary, Essex Crane Rental Corp., at the present time. Mr. Matthews noted, â€œWe continue to execute on our operating initiatives and the Board remains dedicated to evaluating every available option to maximize stockholder value. However, after reviewing market feedback assembled by our financial advisor, RBC Capital Markets (“RBC”), the Board has elected not to continue the strategic evaluation process with RBC with respect to Essex Crane or the Company as a whole. The information we received during this process has been valuable and the Board intends to maintain an ongoing dialogue with RBC.â€