Posts Tagged ‘Keith Stewart’

Past and Present Evine Live CEOs Received $2 Million-Plus Last Year

May 9, 2015

There were some really sweet comp packages handed out last year at Evine Live, to the new managers that took over and the old team that was ousted, according to company filings with federal regulators.

Former CEO Keith Stewart, whose regime was overthrown by dissident shareholders, received executive compensation of $2.8 million last year. Stewart walked away with severance of $2.5 million paid in fiscal 2014.

He was terminated effective June 21, according to the proxy statement that Evine Live filed with the Securities and Exchange Commission.

http://hsprod.investis.com/site/irwizard/vvtv/ir.jsp?page=sec_item_new&ipage=10262692&DSEQ=1&SEQ=&SQDESC=SECTION_BODY&exp=&subsid=41

Stewart’s comp was more than the man who led the revolt against him, Mark Bozek. He got a cool $2 million last year, which included a signing bonus of $125,000 and annual incentive compensation of $382,000 earned under his employment contract.

Bozek also collected $115,000 in relocation expenses.

William McGrath was executive vice president and CFO until he was canned in March. He saw his comp drop to $462,000 from $992,000 in 2013.

Two other executives who were terminated last year walked off with more than $1 million each in executive comp. Former Chief Operating Officer Carol Steinberg got $1.4 million, up from $1.3 million in 2013. And ex-Chief Merchandising Officer Annette Repasch received $1.1 million, versus $921,000 in 2013.

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ShopHQ Honcho Bozek Calls Us ‘Bitter,’ ‘Bitchy’

December 6, 2014

It didn’t take too long for our honeymoon with ShopHQ’s new management to end. In fact, the network’s head honcho Mark Bozek called us “bitchy.”

Sticks and stones, Mark!

We’ve done several recent blogs critical of CEO Bozek’s plans to rebrand the No. 3 home shopping network as Evine Live. We really can’t make head-nor-tail of the name change and the meaningless management-speak that Bozek and his new crew have used to explain it.

Our buddy Mark Bozek

Our buddy Mark Bozek

And we have written as much.

We also blogged recently on ShopHQ’s debut of a food line linked to the Discovery Channel reality hit “Deadliest Catch,” a show that one of Bozek’s boys created, producer Thom Beers.

(As our friend Robin pointed out, perhaps it’s not a good idea to associate a seafood line with the name “Deadliest Catch,” but we digress.)

Beers is also on ShopHQ’s board. WE MADE A MISTAKE (Bless me father, for I have sinned, through my fault, through my fault …) when we read a recent ShopHQ SEC filing, and thought that Beers had left the board.

We were wrong, as a testy Bozek informed us in a curt email. The subject line said “Check your facts.”

“It’s okay to be bitchy and bitter in your ‘reporting,’ Linda,” Bozek wrote. “But get your facts right. Thom Beers is still on our board of directors.”

So there!

Mea culpa for our error. But here’s the thing. We are writing a blog, which means we are offering our opinion. That is basically by definition what a blog is. For someone who claims to be trying to turn ShopHQ into a digital dynamo, Mark Bozek doesn’t seem to have a clue about an Internet basic.

And Mark Bozek, if you think we are bitchy and bitter, you should take a look at sites like “Gawker,” or “Television Without Pity”‘s home shopping forums — and pray that they never take aim at ShopHQ.

And by the way, Bozek wrote us an email expressing his displeasure with us right after his new management team took over at ShopHQ. We had written a blog saying that ShopHQ vendors and hosts must be nervous wondering what their fates to be.

Bozek essentially told us to knock it off, not to make his people nervous. Dude, new management usually brings in its own folks, makes changes. That is what Bozek promised when he set out to ouster Keith Stewart.

We let that pass, but no more.

As we blogged, the New York Post wrote a glowing puff piece on the rebranding of ShopHQ to Evine Live, saying that Bozek is out to revolutionize home shopping or some crap like that.

We fear the emperor has no clothes, and he doesn’t like it when someone like us points it out.

ShopHQ Paying Out $5 Million In Severance To Execs

September 10, 2014

The house cleaning that ShopHQ’s new management did was rather pricey for the No. 3 home shopping network, to the tune of about $5 million.

The company had previously reported that ShopHQ CEO Keith Stewart was getting
a $2.5 million severance package for his exit.

https://homeshoppingista.wordpress.com/2014/06/26/ex-shophq-ceo-keith-stewart-gets-2-5-million-severance-package/

And in a filing with the Securities and Exchange Commission Tuesday, we got an update on Stewart’s final package, and also learned a bit about how much the departures of Chief Operating Officer Carol Steinberg and Chief Merchandising Officer Annette Repasch are costing the network.

http://hsprod.investis.com/site/irwizard/vvtv/ir.jsp?page=sec_item_new&ipage=9797150&DSEQ=&SEQ=&SQDESC=

“In conjunction with Mr. Stewart’s resignation and separation agreement, the Company recorded charges to income totaling $2,620,000 for the second quarter ended Aug. 2, relating primarily to severance payments,” the filing said.

ShopHQ eliminated Steinberg’s position is looking for a replacement for Repasch.

As for their packages, “in conjunction with the terminations, the affected executive officers are eligible for severance amounts which are expected to be paid in February 2015. At this time, the Company estimates severance charges totaling $2,300,000 to be recorded in the third quarter of fiscal 2014,” the SEC filing said.

ShopHQ Records 5 Percent Sales Hike, To $156.6 Million

August 21, 2014

ShopHQ, recently under new management, posted second-quarter net sales of $156.6 million, up 5 percent compared with the year-ago period, the No. 3 home shopping network said Wednesday. The Minnesota-based channel has new offices in Manhattan now, by the way.

http://shophq.mwnewsroom.com/press-releases/valuevision-reports-second-quarter-2014-results-nasdaq-vvtv-1138859

ShopHQ’s growth in the second quarter was greater than QVC’s, but less than HSN’s. Industry leader QVS saw a 3 percent jump in revenue, to $1.4 billion. HSN’s net sales rose 6 percent, to $556.5 million.

ShopHQ CEO Mark Bozek

ShopHQ CEO Mark Bozek

ShopHQ’s quarter was boosted by strong performances in the fashion and accessories, beauty, and health and fitness categories.

The CEO who replaced Keith Stewart, HSN vet Mark Bozek, had this to say.

“The company delivered solid second-quarter results with strong growth in total customer counts and increased order volume on mobile devices,” Bozek said in a canned statement.

“I am excited to be leading the company into a new phase of growth while working alongside our newly formed board and a dedicated and re-energized employee base.”

At ShopHQ gross profit dollars increased 9 percent to $60.4 million, as gross profit as a percent of sales for the quarter improved to 38.6 percent, compared to 37.5 percent a year ago.

Adjusted EBITDA increased to $5.5 million in the second quarter versus $3.8 million last year, driven by the company’s sales and gross profit improvements.

Adjusted net income was $800,000, or one cent a share, compared to an adjusted net loss of $800,000 in the second quarter last year.

“Our commerce platforms, led by our reach into 87 million TV homes in the U.S., are unique assets that provide us with tremendous potential,” Bozek said. “Driving growth will largely be centered around attracting and building a diverse portfolio of proprietary brands and products with the goal of growing our customer base.”

“We will be focused on supporting the growth of these proprietary brands with immersive, personality-driven programming that is designed to drive greater engagement and social commerce on all our platforms,” ShopHQ’s new honcho said.

“Our process is all about an evolution of the business — not a revolution,” Bozek said. “Our recently established office in New York City should aid us in all these efforts. I plan to elaborate more on our new vision for the company in the coming months, as we begin to execute on our strategy of a more fully leveraged multichannel commerce platform.”

Chief Financial Officer and Executive Vice President William McGrath, who seemed to have escaped the ax under the new regime, had this to say.

“We ended the quarter with $23 million in cash and restricted cash compared to $27 million at the end of Q1’14,” McGrath said. “Net use of cash includes $5 million in working capital and $3 million in capital expenditures, partially offset by Adjusted EBITDA of $6 million in the quarter.”

Two More ShopHQ Execs Exit The Network

August 20, 2014

More heads have rolled — we mean executives have left — ShopHQ.

The No. 3 home shopping network said that Chief Operating Officer Carol Steinberg and Chief Merchandising Officer Annette Repasch were “no longer” with the channel, effective this past Monday, according to a filing Tuesday with the Securities and Exchange Commission.

http://hsprod.investis.com/site/irwizard/vvtv/ir.jsp?page=sec_item_new&ipage=9765997&DSEQ=&SEQ=&SQDESC=

Both executives are eligible to be paid a severance in accordance with ShopHQ’s change-of-control provisions, the filing said.

“The company will be commencing a search for a new Chief Merchandising Officer utilizing the services of a nationally recognized search firm, Karen Harvey Consulting,” ShopHQ said.

CEO Keith Stewart was the first to leave once a dissident shareholder group won control of the network.

Ex-ShopHQ CEO Keith Stewart Gets $2.5 Million Severance Package

June 26, 2014

Don’t shed any tears for Keith Stewart, who exited as CEO of ShopHQ last weekend after a long proxy fight. He’s leaving with a nice severance package.

The network filed a copy of his severance agreement with the Securities and Exchange Commission on Wednesday.

http://hsprod.investis.com/site/irwizard/vvtv/ir.jsp?page=sec_item_new&ipage=9670635&DSEQ=&SEQ=&SQDESC=

Here’s the bottom line: He will get severance pay of $1,427,108, which represents twice his annual base salary as well as severance bonus pay of $1,070,331, which represents twice his target annual incentive bonus of 75 percent of his annual base salary “for a period of 24 months.”

Keith Stewart

Keith Stewart

Under the “separation agreement,” ShopHQ will also pay Stewart all accrued and earned (but unpaid) base salary, vacation and other accrued amounts, as well as all outstanding expense reimbursements. The figure for all that is unspecified.

As for benefits, Stewart and his family will continue to receive group health, dental and life insurance.

According to the SEC filing, Stewart resigned as a member of the network’s board and as CEO last Sunday.

“Mr. Stewart did not resign due to any material disagreement with the Company, known to an executive officer of the Company, on any matter relating to the Company’s operations, policies or practices or otherwise<' the filing said.

Stewart left after dissident shareholders, The Clinton Group, waged a successful battle to get four of its nominees voted onto ShopHQ's board.

Under the separation Agreement, Stewart and ShopHQ agreed that his resignation would be treated as a result of an “event” and for reasons other than “cause.”

There are conditions for Stewart to get this golden parachute.

He must "deliver to the Company a customary release of claims in favor of the Company in an agreed form; (ii) Mr. Stewart must not revoke such release; (iii) the rescission periods provided by law for such release must have expired; and (iv) Mr. Stewart must be in substantial compliance with the material terms of the Separation Agreement and the Employment."

The agreement also includes "customary non-competition, non-disparagement and confidentiality and non-disclosure provisions." In other words, he can't badmouth ShopHQ.

New Sheriff In Town At ShopHQ, Boots Should Be Shaking

June 25, 2014

So ShopHQ’s dissident shareholders have succeeded in their quest, and dethroned CEO Keith Stewart. The new sheriff in town is Mark Bozek, a former HSN chief. Now what?

In their many regulatory filings and letters to shareholders, The Clinton Group made it clear it was unhappy with ShopHQ’s product mix. We don’t think you’ll be seeing hours and hours — and days — of Invicta watches in the near future.

Meet Mark Bozek

Meet Mark Bozek

The Clinton Group told other shareholders that it didn’t make sense to sell merchandize that consumers can readily purchase in a brick-and-mortar store.

Next, the president of ShopHQ under Stewart, Bob Ayd, should probably be sending his resume out, unless he has a prior relationship with Bozek that we don’t know about.

The dissidents also criticized the No. 3 home shopping network’s location in remote, and freezing, Minneapolis. The network will likely open up, at the very least, an office in Manhattan.

If we were a ShopHQ vendor, we’d be worried right now. We don’t have the sales figures to know how Chuck Clemency or Paul Deasy’s jewelry sells, but the new ShopHQ leadership will give it a close look, we’re sure.

The Clinton talked about creating proprietary brands, but we assume they will want to launch their own. We don’t know how loyal they will be to the old ones.

And as for the network’s hosts, we suspect Bozek will give them a close look to decide if they should stay or not.

Here’s the 411 on Bozek:

Mr. Bozek is the former CEO of Home Shopping Network (HSN). Mr. Bozek generated over $6 billion in sales and $1 billion in profits while managing 6,000 employees at HSN. Mr. Bozek transformed HSN’s merchandising through innovation and strategic leadership.

Mr. Bozek built multiple $100+ million proprietary brands while running the company, including Ingenious Designs. He also was responsible for the development and growth of HSN’s current top selling brands including Andrew Lessman, Diane Gilman, Wolfgang Puck and Serious Skin Care.

In 1998, Bozek launched HSN.com. He grew this online business to over $100 million in 18 months. Mr. Bozek was also responsible for the international launches of HSN in Japan, Europe and China.

Mr. Bozek’s merchandising and media success began as a producer at Fox Television and then as a Senior Vice President at QVC. Mr. Bozek was at Fox Television at its inception in 1998, where he was a three-time Emmy nominee. Bozek has previously served as a director of Sykes Enterprises.

Dissident ShopHQ Shareholders Oust Keith Stewart, Bozek In Charge

June 24, 2014

ValueVision Media Reconstitutes Board of Directors to Include Five New Members; Mark Bozek, Former HSN Chief, Named Chief Executive Officer; Bob Rosenblatt Named Chairman of the Board

In other words, Keith Stewart was essentially shit-canned.

MINNEAPOLIS, MN–(Marketwired – Jun 23, 2014) – ValueVision Media, Inc. (NASDAQ: VVTV), a multichannel electronic retailer operating as ShopHQ via TV, Internet and mobile, today announced it has reconstituted its Board of Directors and has unanimously appointed Mark Bozek Chief Executive Officer and Bob Rosenblatt Non-Executive Chairman of the Board, effective immediately.

Mr. Bozek succeeds Keith Stewart, who has resigned as Chief Executive Officer and as a director of the Company. Mr. Bozek has more than 20 years of senior executive experience in the multi-channel commerce, electronic retailing and entertainment industries, including having served as CEO of HSN, Inc., Senior Vice President of QVC, Inc., and as a producer at Fox Television.

ValueVision also announced that IVS Associates, Inc., the independent inspector of elections, has certified the voting results at the Company’s Annual Meeting, held on June 18, 2014. Four ValueVision nominees and four nominees of the Clinton Group, Inc. were elected to the ValueVision Board of Directors. ‘

The Board has appointed former President of Saks Fifth Avenue, also a fifth Clinton Group nominee, Ronald Frasch, as a director following Mr. Stewart’s resignation.

Accordingly, the Board will consist of: Thomas Beers, Mark Bozek, John Buck, Ronald Frasch, Landel Hobbs, Lowell Robinson, Bob Rosenblatt and Fred Siegel. The newly reconstituted Board will focus on further strengthening the Company’s financial and operating performance and delivering meaningful returns for all ValueVision shareholders.

John Buck said, “We are pleased to welcome Mark Bozek, a pioneer and innovator in the retail and electronic retailing industries, as our new CEO. Mark has a proven track record of building consumer brands and driving revenue at both HSN and QVC, and we expect to leverage his expertise as ValueVision embarks on its very exciting next stage. As the Board’s longest tenured director, I welcome the energy and fresh perspectives of Mark and our other new directors, and look forward to working closely with them to transform the ShopHQ brand into the preeminent commerce and media franchise we know it can become.”

Mark Bozek said, “I am thrilled to join the team at ShopHQ and humbled by the opportunity to work with a talented Board and dedicated employees. ValueVision has great assets and our vision of all that comes next is ambitious; we plan to evolve the business, creating more robust platforms that enable us to become a far more relevant player in the multi-channel worlds of TV, online and mobile commerce and entertainment.

“By instilling a culture of accountability, respect and passion for the unique world of a ‘dollars per minute’ business, we believe ShopHQ has boundless potential. We will work tirelessly in the coming months to develop a comprehensive strategic plan for growth — one that includes employees, our loyal customers, as well as our valued product and brand creators — enabling ValueVision to create long-term shareholder value.”

Mr. Buck concluded, “On behalf of the Board, I would like to thank Keith Stewart, along with the other outgoing directors — Jill Botway, William Evans, Sean Orr and Randy Ronning — for their many contributions to ValueVision. We wish them all good things in their future endeavors.”

ValueVision shareholders also approved all proposals submitted for a vote at the Annual Meeting, including the approval of Deloitte & Touche LLP as the Company’s independent registered public accounting firm for the fiscal year ending January 31, 2015. The results of the Annual Meeting have been filed with the Securities and Exchange Commission.

http://nypost.com/2014/06/24/mark-bozek-to-succeed-keith-stewart-at-shophq/

http://nypost.com/2014/06/24/mark-bozek-to-succeed-keith-stewart-at-shophq/

Beers, HSN And QVC Alums Elected To ShopHQ Board

June 22, 2014

It’s official: The man who produced “Deadliest Catch” and the former head of HSN are now on ShopHQ’s board.

Reality TV guru Thom Beers and Ex-HSN chief Mark Bozek are among four members of a dissident stockholder group that were elected to replace half ShopHQ’s board last week.

ShopHQ filed an 8-K with the Securities and Exchange Commission Friday listing the results of the vote.

http://hsprod.investis.com/site/irwizard/vvtv/ir.jsp?page=sec_item_new&ipage=9665044&DSEQ=&SEQ=&SQDESC=

The Clinton Group, which has been waging a battle to replace ShopHQ’s management, including CEO Keith Stewart, managed to get not only Beers and Bozek elected, but also QVC alum Fred Siegel and Robert Rosenblatt, a veteran of Tommy Hilfiger and HSN.

http://addvalueandvision.com/

It should make for some interesting times at the No. 3 home shopping network.

Group Wants To Meet ShopHQ Stockholders, And Get Their Votes

June 16, 2014

Here’s a new one on us: ShopHQ’s dissident shareholder group is holding a meet-and-greet for the network’s employees and vendors. And folks, the Clinton Group wants your votes!

In its latest missive the Clinton Group, which is seeking to oust ShopHQ’s current management, is making it very easy for shareholders to vote for its slate of board nominees instead of Keith Stewart’s crew.

“Meet the Clinton Group team at the Minneapolis Marriott Southwest in Minnetonka, Minnesota, on Tuesday, June 17 from 5 to 7 pm at Stacy’s Grill, where they can fill out a ballot or drop one off,” the feisty shareholders said.

http://hsprod.investis.com/site/irwizard/vvtv/ir.jsp?page=sec_item_new&ipage=9655232&DSEQ=&SEQ=&SQDESC=

In a press release, the Clinton Group also called for ShopHQ “to assure its vendors and employees that they can exercise their voting rights at the Company’s upcoming June 18 annual meeting without fear of reprisal.”

That was followed by these words from the head of the dissident shareholders.

“We are disturbed that we have heard from multiple employees and vendors that they are afraid to vote their shares for us because they fear management will retaliate against them,” Gregory Taxin, President of Clinton Group, said in a statement. “We believe every shareholder is entitled to vote without coercion and we welcome the participation of the Company’s employees and vendors in this process.”

Clinton Group’s nominees have committed that they will not treat any employee or vendor who votes against the nominees differently than employees and vendors who side with the Clinton Group, in the event the Clinton Group nominees are elected, according to the press release.

“The Company’s management and Board should assure the Company’s valuable employees and vendors that they may freely exercise their voting rights without fear of retaliation,” Taxin said. “In my opinion, anything less is an abuse of corporate position and inconsistent with Mr. Stewart’s June 12 email to employees.”

Employees and vendors were told that they can vote shares held at brokerage firms online and anonymously in favor of the Clinton Group nominees by using the “control number” on the GOLD proxy card. Employees and vendors with “registered” shares can scan and email those ballots to Clinton Group (VVTV@okapipartners.com).

Alternatively, employees and vendors can come to the company’s annual meeting to vote (on June 18 at 9 AM at headquarters). Or they can come to the Stacy’s Grill. We hear Thom Beers is buying!