Rochester, New York, October 17, 2018 — Today, Zarvic Brothers released the following open letter to shareholders and board of directors of Manning & Napier, Inc.
October 17, 2018
As a follow up to our September letter to the Board of Directors of Manning & Napier, Inc. In past earnings calls the management of Manning & Napier always paints a rosy picture of what is in reality a bleak situation that I fear could turn out like that of Eastman Kodak. There is much to unpack and debunk within the Board of Directors, as well as upper management and I look forward to doing this in the coming weeks and months.
The primary concern of the management has been their own compensation, potential liability, and reputations. For instance the total compensation for Chuck Stamey ($1,455,511), Ebrahim Busheri ($1,989,899), Richard Yates ($713,756) Beth Galusha ($363,756), etc. It appears they have bonus's and other equity paid out immediately
Manning & Napier desperately needs new leadership. Despite our efforts, the “old guard” directors still seem to defend CEOs that are incapable of (1) introducing new products that do more than play catch up to competitors and (2) acknowledging that cost cutting alone, particularly in sales fees, marketing, R&D, and customer service, is not a formula for changing the current alarming revenue trajectory of single digit year over year percentage returns on equity (ROE). Manning & Napier, Inc. stock under perform's the S&P 500 Index dramatically over the past years. Perhaps their defense is not so remarkable given the CEO's, upper management including Ebrahim Busheri, are part of the old guard.
The Manning & Napier, Inc. board is delusional, they think everyone is wrong, the shareholders, analyst, and corporate governance experts, only they in their infinite, benevolent wisdom, know whats best for our company.
If long tenured directors at Manning & Napier, Inc continue to refuse to acknowledge that change is needed, then we believe it is mandatory for shareholders to speak up and demand that further new blood be introduced into the boardroom. It has been shown time and time again that replacing an ineffective CEO, or in this case CEOs can lead to increased dollars of value creation for ALL shareholders. We are hopeful that a change in senior leadership will lead to increased creation of shareholder value. The long tenured members of the board seem to have their heads in the sand just like at Eastman Kodak. There is still time for change, but very little time. Stay tuned for more.
Nicholas Stirpe Jr.
Important disclosure information
This letter contains our current views on the value of securities of Manning & Napier inc. Our views are based on our own analysis of publicly available information and assumptions we believe to be reasonable. There can be no assurance that the information we considered and analyzed is accurate or complete. Similarly, there can be no assurance that our assumptions are correct. The actual performance and results of manning & napier inc. May differ materially from our assumptions and analysis.
We have not sought, nor have we received, permission from any third-party to include their information in this letter. Any such information should not be viewed as indicating the support of such third party for the views expressed herein.
Our views and our holdings could change at any time. We may sell any or all of our long positions, or increase our long exposure by purchasing additional securities. We may take any of these or other actions regarding Manning & Napier, inc. Without updating this letter or providing any notice whatsoever of any such changes (except as otherwise required by applicable law).
The information contained above is not and should not be construed as investment advice and does not purport to be and does not express any opinion as to the price at which the securities of manning & napier inc. May trade at any time. The information and opinions provided above should not be taken as specific advice on the merits of any investment decision. Investors should make their own decisions regarding Manning & Napier inc. And their prospects based on such investors' own review of publically available information and should not rely on the information contained above. Neither Zarvic Brothrs llc nor any affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained above.
Certain statements contained in this letter are forward-looking statements including, but not limited to, statements that are predictions of or indications of future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties. Forward-looking statements are not guarantees of future performance or activities and are subject to many risks and uncertainties. Due to such risks and uncertainties, actual events or results or actual performance may differ materially from those reflected or contemplated in such forward-looking statements. Forward- looking statements can be identified by the use of the future tense or other forward-looking words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "should," "may," "will," "objective," "projection," "forecast," "continue," "strategy," "position" or the negative of those terms or other variations of them or by comparable terminology.