The $20 million director…

July 12, 2006

One of Shaw Group’s (SGR) directors is getting a nice chunk of business from the engineering company, according to the most recent Q: $20.2 million for the nine months ended May 31.

Though Shaw doesn’t name the director in the Q, it does note that the board had previously determined that he was "non-independent". Figuring out exactly who Shaw is talking about takes a bit of back-tracking through the proxy and an earlier Q where the contract was first disclosed. So who is the mystery director? L. Lane Grigsby, who runs privately held Cajun Constructors, Inc. From the proxy, we learn that Grigsby has been a Shaw director since 1995. And from this tidbit on Cajun’s website, we learn that the $20 million works out to over 10% of Cajun’s revenues. Of course, it could be worse: at least Shaw acknowledges  that Grigsby isn’t independent.

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