PVC pipe maker PW Eagle Inc. is planning changes to its board of directors and overall governance structure after two of its largest shareholders encouraged the company to pursue strategic moneymaking alternatives in March filings with the Securities and Exchange Commission.
Two officials from the larger shareholder have been nominated to join the revamped board at Eugene, Ore.-based PW Eagle.
The two private equity firms, Hamilton, Bermuda-based Caxton International Ltd. and Norwalk, Conn.-based Pirate Capital LLC - which together own 24 percent of PW Eagle stock - suggested selling the company might provide a greater return on investment than the firm's current stock value.
PW Eagle said in a news release that the firm's board will expand to seven members, from five. The company will nominate two Pirate Capital officials.
``We've proposed a new slate,'' said Scott Long, PW Eagle's chief financial officer, in an April 25 telephone interview. ``We're proposing to change our bylaws where every director is up for election every year.''
Nominated for the new positions are: PW Eagle Chief Executive Officer Jerry Dukes; Zachary George and Thomas Hudson of Pirate Capital; lawyer Stephen Rathkopf, a partner in New York law firm Herrick, Feinstein LLP; Lee Meyer, CEO of Kearney, Mo.-based window maker Ply Gem Industries Inc.; Martin White, a retiring executive from Dallas-based OxyVinyls LP; and investment banker Todd Goodwin.
None of the current directors is nominated for a new post. PW Eagle awaits regulatory approval for the proposed changes.
The pipe maker also has postponed its annual shareholders meeting until the changes are finalized.
``This is really part of the evolution of the company,'' Long said.
PW Eagle is coming off record-setting financial performance for both the fourth quarter and 2005.