Harad urged to pass on bonus

0

15 April 2005 – Boston (MA): OfficeMax’s third largest shareholder and chief irritant of recent weeks, K Capital Partners, has called on George Harad to forgo more than $14 million because of the company’s "weak performance".

In a letter to OfficeMax’s executive chairman, the Boston-based investment firm called on Harad, who is due to retire this summer, to "voluntarily forgo both the $10 million payment due to you in June 2005 and the $4.3 million in additional pension benefits you are due to receive" .

This is not the first time that K Capital, which owns a 6.2 per cent share in ‘Max, has been a cause of frustration to the troubled power player. Earlier this year it urged it to consider a break-up or sale of the company, then earlier this week it put forward a candidate to stand for election to the board, a move that met with "disappointment".

K Capital’s letter read: "Given OfficeMax’s weak performance and the significant and ongoing challenges that the company has faced since Boise Cascade’s acquisition of OfficeMax, we respectfully request that you voluntarily forego both the $10 million payment due to you in June 2005 and the $4.3 million in additional pension benefits.

"We are confident that by voluntarily forgoing these payments, you will realign your interests with those of the company and its shareholders."