By Dr. Terry L. Simpson, Chairman of the Board

The annual meeting and election is over, and on behalf of the CIRI Board of Directors, I wish to thank the shareholders who voted in this year's election for giving our board-endorsed slate a victory over the dissident group of candidates calling themselves the Alliance. Although this group chose to run a negative campaign full of groundless charges and rhetoric, they were able to elect only two of the five candidates who ran on their ticket.

It was particularly unfortunate that the Alliance chose to take their fight out of the shareholder community and thrust it into the public arena this year by going to the press with their campaign. While the election process can sometimes be confusing and frustrating with negative and conflicting information being put before the shareholders, this year the Alliance group unfortunately took a particularly negative turn. The level of public criticism this group directed toward CIRI is, in my opinion, destructive to the corporation and shareholders. It tears CIRI down in the public's eye, potentially hurting the company's credibility and jeopardizing existing relationships and future business opportunities.

Among other charges, we have been accused of being entrenched and having lost focus on what is important. I would like to respond in two ways. First, we tried very hard to add three very capable young professionals to the board this year as part of our board-endorsed slate of candidates. Is that entrenched? I don't believe so. However, when you look at the slate the Alliance group promoted, one had retired from CIRI more than six years ago with a large retirement package, two were former employees who were fired and received settlements, and another had served on the board off and on for more than 20 years.

Secondly, this board has always been focused on what is best for the shareholders and that was the reason for paying out such a large special distribution in two lump payments instead of doling it out quarterly over a longer period of time. We have not lost our focus on shareholders and will continue to put you at the top of our priority list. At the same time, as directors we carry out our fiduciary duties to try to make sure this company is the best it can be now and for future generations of shareholders.

Having said that, we must put the acrimony behind us and look to the future. We must focus not on personalities, but on the future success of the company and the benefit to the shareholders. As we have seen time and again over the years, the majority of shareholders are proud of CIRI and supportive of the positive leadership and direction of the corporation.

I want to assure shareholders that all of our board members are, and will continue to be, treated fairly and with respect. Each and every board member is provided with the information and resources necessary to make informed decisions. Likewise, every director is provided the same opportunity to deliberate and vote on the important matters brought before the board. I only hope that when in the boardroom, those directors who continue to criticize the company will use the information wisely and constructively participate in the forum for the advancement of CIRI and not their own political agenda.

It is a pleasure to have long-time and knowledgeable board members Patrick Marrs and Agnes Brown re-elected to the board. And I welcome back Margie Brown, who brings with her many years of experience with CIRI. I also thank our other board-endorsed candidates who did not make it on the board this year, Bart Garber and Greg Razo, for their hard work and dedication during the campaign. Both of these gentlemen, with their impressive educations, business skills, and integrity, truly represent bright spots in the future of CIRI. The majority of the board and I will continue to work hard to keep Mr. Garber and Mr. Razo involved in our corporation and try to get them elected to the board of directors.

We appreciate our shareholders' endorsement. CIRI will only become stronger in the future with a dedicated, independent board, and our good management and staff. We pledge to continue working hard on your behalf.

Previous Article | Top | Next Article | Return to the list of newsletters