| Turner says christianity religion losers Original Source Link: (May no longer be active) http://www.ajc.com/business/content/business/cnn/0503/16aolmeeting.htmlhttp://www.ajc.com/business/content/business/cnn/0503/16aolmeeting.html
UPDATED: 1:16 P.M.
Turner criticized by shareholders
By SHELLEY EMLING The Atlanta Journal-Constitution
LEESBURG, Va. -- Ted Turner caught the ire of at least two shareholders at AOL Time Warner's annual meeting Friday.
Shareholder Scott Walker said Turner, who stepped down as vice chairman but remained a board member, too often makes a spectacle of himself.
"He frequently speaks out in ways that hurt the company," Walker said at the meeting. "He speaks out against the company. Why on earth should any of us give him another chance on the board?"
The remarks prompted Chairman and CEO Richard Parsons to launch a defense of Turner.
"Ted is one of our most valuable directors. We're lucky to have him," Parsons said to applause from the crowd.
Another shareholder, Dean Shahinian, complained that some of Turner's statements make AOL Time Warner appear anti-religion.
"He frequently says that Christianity is a religion of losers," Shahinian said. "We don't need someone like that representing the company."
All 13 candidates for the 13 spots on the board were elected, including Turner and outgoing Chairman Steve Case.
Turner received 96 percent of the votes cast, similar to what most others received.
But Case, who faced opposition from investors including the company's biggest institutional shareholder, Capital Research & Management, received only 78 percent of votes cast.
Other directors also faced opposition, including two of Case's closest supporters on the board, Miles Gilburne, who got 65 percent of the votes cast, and Ken Novack, who received 82 percent.
None of the others was criticized individually as Turner was.
Turner had no comment when asked about the shareholders' remarks after the meeting.
Shareholders also voiced concern about the company's slumping stock, which has fallen more than 70 percent since AOL and Time Warner merged in 2001.
Parsons expressed confidence that the company will turn around. In particular, he predicted, the AOL division will "regain its stride."
Information from Dow Jones was used in this report.
AOL annual meeting may be a bit tense
By SHELLEY EMLING The Atlanta Journal-Constitution
NEW YORK -- When Richard Parsons took over as chief executive of AOL Time Warner Inc. at last year's annual meeting, he urged shareholders to be patient as he tackled a disastrous slump in the company's stock price.
The stock closed that day at $18.90. Many wonder how Parsons will explain to another crowd of shareholders today why the stock price of the world's largest media company -- which counts Atlanta-based Turner Broadcasting and CNN among its units -- hovers around $14.
The much-anticipated annual meeting not only marks America Online founder Steve Case's final turn as chairman, it will cap Parsons' long rise to the top of the business world by adding chairman to his title.
The gathering may be contentious, with investors lining up to challenge directors.
Many will be eager to see whether Ted Turner, who will step down as vice chairman but remain on the board of directors, will oppose Case staying on as a director as well.
Turner this month sold more than half his shares in the company but also said he "remains supportive of management." Other investors are losing patience waiting for a turnaround.
The California Public Employees Retirement System, the largest U.S. pension fund, has indicated it won't vote for five directors: Hilton Hotels CEO Stephen Bollenbach, Netscape founder James Barksdale, former Major League Baseball Commissioner Francis "Fay" Vincent, Fannie Mae Chairman Franklin Raines and Miles Gilburne, managing director of ZG Ventures.
Capital Research and Management, AOL's biggest institutional shareholder, will oppose the re-election of three board members, including Case, according to a report in The Wall Street Journal.
The votes aren't likely to change the makeup of the board, though. The top 13 candidates receiving votes will get a spot, and the slate of 13 nominees is running unopposed.
Today's annual meeting will be in Lansdowne, Va., the first held outside the New York headquarters since the merger in 2001.
"We're looking to rotate meetings to be close to employee hubs," said Tricia Primrose, a company spokeswoman. The AOL online division is headquartered in Dulles, Va., and 4,500 employees are stationed in the area.
Parsons seems determined to overcome AOL Time Warner's problems with its shareholders and its business.
A profile in the current issue of Business Week says Parsons "is a lot tougher than you think."
The 55-year-old former adviser to Gov. Nelson Rockefeller of New York said the company is "poised to surprise on the upside" for the first time since the merger.
Indeed, the company's last quarterly report, issued April 28, exceeded the predictions of most analysts. The company posted net income of $396 million in the first quarter, or 9 cents a share, exceeding analyst estimates.
The Atlanta unit, Turner Broadcasting, continues to be a stable performer for the company, though it has challenges that include CNN's ratings battle with rival Fox News.
The company also has taken great pains to reach out to different types of customers.
For example, AOL on Monday launched its first national Spanish-language advertising campaign to target the U.S. Hispanic market.
"The company has made significant progress on a variety of fronts since last year's meeting," said Mark May, an analyst at Kaufman Bros.
But while HBO and other divisions boast stellar performances, the AOL unit continues to grapple with the challenge of moving customers from dial-up Internet service to broadband as it tries to develop new content.
The company still faces investigations into AOL's pre-merger accounting practices by both the Securities and Exchange Commission and the Justice Department.
And Parsons is struggling to pare the company's $27 billion debt by selling non-core assets while dismissing calls to divest the online division that once was the crown jewel of the merged conglomerate.
May said the company has made strides in this area, pointing to the recent sale of its 50 percent stake in the Comedy Central cable network to Viacom Inc.
The company has also struck a preliminary deal to sell the Hawks, the Thrashers and operating rights to Philips Arena to Texan David McDavid for an estimated $350 million to $400 million. AOL Time Warner is shopping the Braves and has hired investment bank Allen and Co. to help find a buyer.
"In the near term, the stock will get moving when there's a resolution to the accounting investigations," May said.
|
|