Tags: green mountain | coffee

Green Mountain Removes Chairman After Stock Sale

Tuesday, 08 May 2012 08:22 PM

Green Mountain Coffee Roasters Inc. said Robert P. Stiller will no longer serve as chairman after he sold shares to make a margin call, which was inconsistent with the company’s trading policies.

Michael J. Mardy, chairman of the company’s audit and finance committee, will serve as interim chairman effective immediately, the Waterbury, Vermont-based company said in a statement today. Board member William D. Davis, who also sold shares to make a margin call, is no longer on any committees and no longer will serve as lead director, the company said. Stiller and Davis will remain on the board without pay, Green Mountain said.

“These changes are the result of the actions taken by the board to address stock sales by Mr. Stiller’s and Mr. Davis’ brokerage firm, which sales were inconsistent with the company’s internal trading policies,” Green Mountain said in the statement. Together they sold about 5.5 million shares, the company said.

Green Mountain called the forced sales “disappointing” and said Stiller and Davis are required to settle outstanding margin loans by the end of this year.

Green Mountain fell 1.5 percent to $25.99 at 5:40 p.m. in New York, after closing at $26.38. The shares dropped 41 percent this year through the close of regular trading Tuesday.

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Tuesday, 08 May 2012 08:22 PM
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