Things you find if you climb out of the recliner…

July 11, 2006

Since it was Friday night, we decided to stretch out in our recliner and watch a movie.  Curiosity got the better of us, in the form of the proxy filed by La-Z-Boy (LZB) after the market close.  Seems their business relationships are just as cozy as their recliners.  For example,  Stephanie Tull, the daughter of Senior VP Rodney England and also the Vice President of Store Development for the Company’s England, Inc. operations, received salary and bonus for fiscal 2006 totaling $99,537.  Her husband, Tim, did even better, picking up salary and bonus for fiscal 2006 totaling $182,468 as Vice President of Sales for the Company’s England, Inc. operations.  Don’t forget father Rodney — the Company paid him some $47,630 as reimbursement for the Company’s use of his personal airplane (in addition to his normal $470,000 in salary and bonus.)

Finally, the Company notes that "Kincaid Galleries Inc. was a retail furniture outlet owned by Rebecca Adderholdt and Kathy McAteer, both of whom are sisters of [Senior VP] Steven Kincaid. During fiscal 2005, Kincaid Galleries, Inc. liquidated its inventories and went out of business. At that time, it owed us approximately $560,000 for inventory we had supplied in previous years, for which we established a reserve. We continue to pursue a recovery of the debt."  Fair enough, except that in last year’s proxy, the Company was owed the very same $560,000, although La-Z-Boy claimed at that time that the Company "continue[d] to pursue and anticipate[d] a recovery of the debt over time."  It’s been a year, guys.  Sounds to us like La-Z-Boy’s collections department has gotten a bit too lazy, particularly when it comes to people related to company executives.

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