Letter from Ankur Saggar to GSE Systems Board, Calling for New Leadership or Pursuit of Strategic Alternatives
Dec 1, 2022
Current Leadership has operated GSE Systems as a “Lifestyle Business” and must be removed. Board should explore strategic alternatives to fully realize sum of parts value of GSE Systems.
New York City, New York Nov 30, 2022 (Issuewire.com) - The Board of Directors
GSE Systems, Inc.
6940 Columbia Gateway Dr., Suite 470
Columbia, MD 21046
Dear GSE Systems Directors:
As you well know, there are abundant reasons to be dissatisfied with the performance of GSE Systems (NASDAQ:GVP) in the public markets during the tenure of Mr. Kyle Loudermilk. As a result, I do not intend to recap the continually disappointing operating results, dismal Total shareholder return, failed acquisitions, decline of Core Simulation business, inability to grow sales, dispirited employees, and a depressed stock price. The Company's Q3 2022 poor performance show that it's unable to seize upon market opportunities with a weak leader at the helm who doesn't have the skills, innovation, and inspiration that the business needs at this critical juncture.
Since my prior communication to the Board, I have been inundated with phone calls from disgruntled GVP Shareholders who are frustrated by historical execution and skeptical of the Company's ability to execute under the leadership of Mr. Kyle Loudermilk. I believe stockholders are fed up with the status quo at GSE Systems.
IT'S TIME TO TAKE DECISIVE ACTION NOW.
If the Board wants to continue to run the Company in the public market, I believe it needs to immediately fire Mr. Kyle Loudermilk and initiate succession plan Or, the Board should explore strategic alternatives to realize sum of parts valuation.
Mr. Kyle Loudermilk should be held accountable for his poor performance and repeated failures to effectively lead GSE Systems. For years he has operated GSE Systems as a lifestyle business, placing his own interests ahead of its shareholders best interests. We believe that no Board exercising reasonable judgment could leave Mr. Kyle Loudermilk in charge of GSE Systems Inc. And he should have enough self-awareness, to resign as the CEO.
Perhaps some of you -- friends and colleagues with Mr. Kyle Loudermilk for many years -- feel obligated to protect him. But the law and equity markets expect you to perform your fiduciary responsibilities to shareholders. Your role isn't to shield Mr. Kyle Loudermilk from blame for his poor track record. Instead, you are charged with overseeing management and ensuring the best leader runs the Company.
Mr. Kyle Loudermilk has had 7 years to manage the company without distractions but failed to deliver shareholder value. GSE Systems requires a leader with sufficient experience of selling to energy utilities who can move seamlessly around the globe generating new business, strengthening client relationships and inspire employees. Respectfully, History shows that Mr. Kyle Loudermilk isn't the right person to repair and lead GSE Systems in this difficult environment.
I hope that you will be faithful to your obligation to shareholders.
Sincerely,
Ankur Saggar
Source :GVP Shareholders for Change
This article was originally published by IssueWire. Read the original article here.
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