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George Economou Has a Record of Self-Dealing To the Detriment of Other Investors
Genco shareholders should be particularly concerned when Economou claims to be concerned about capital allocation. His history is capital allocation mixed with conflicts of interest, self-dealing and shareholder value destruction for personal gain.
We believe that Economou’s actions at DryShips, his last public company, are indicative of how he has conducted business throughout his career and serve as a warning to Genco shareholders. These actions were characterized by abrupt and perplexing deviations of corporate strategy, high financial leverage at peak market cycles, a litany of related-party transactions, self-dealing and poor corporate governance.
Economou’s company, TMS Tankers, was also recently designated an “international sponsor of war” by the Ukrainian government for transporting Russian crude oil and fuel.
Adding Economou’s nominee to the Genco Board is not in the best interest of Genco shareholders. Pons has been a professional pawn to activists with shady track records throughout his career and we believe he has demonstrated no ability to exercise independence. He’s also overseen significant value destruction at companies on which he’s served on the board. Most of the companies on which he has served as a director have either declined in value during his tenure or underperformed the S&P 500.
Pons has no experience in shipping, commodities, cyclical businesses or anything relevant to Genco’s business. During his interview with the Board’s Nomination and Governance Committee he touted his general experience in board and management positions, but he had no general or specific ideas for the Company.
