Changes at Essex Rental Corp. could save $500M
“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," Nick Matthews, CEO of Essex Rental Corp., said. "We anticipate realizing approximately $500,000 in annualized cost savings as a result of these changes.”
Changes made include:
-- Disbanding the Strategic Planning and Finance Committee.
-- Not renewing an office lease with Hyde Park Real Estate LLC in New York.
-- The number of directors comprising the board has been reduced from six to five for the foreseeable future.
-- 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.
-- The board has elected Bill Fox to chair both the Nominating and Governance Committee and the Compensation Committee.
Matthews said additional savings will come from other cost-cutting measures.
“We continue to execute on our operating initiatives and the board remains dedicated to evaluating every available option to maximize stockholder value," Matthews said. "However, after reviewing market feedback assembled by our financial adviser, the board has elected not to continue the strategic evaluation process with RBC Capital Markets 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.”