The Rite Aid Board Prescription: Complete The Director Refill

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About: Rite Aid Corporation (RAD)
by: Steve Krol
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Steve Krol
Long only, Deep Value, special situations
Summary

Six directors replaced in last 2 years.  A good start with six down, and only three more to go to complete the board refill.

Accountability, integrity, and good corporate governance at the top is a board requirement for continued new outside investment in Rite Aid stock.

Undue influence by a few directors in past years led to Rite Aid's financial woes caused by an acquisition in Eckerd and a conflict of interest merger attempt for Albertsons.

A reinstatement of Rite Aid's positive reputation may take time, but I am cautiously optimistic that the end of the Miller, Sammons, Standley dynasty, (all colleagues in the supermarket business) and final replacement of the old-guard directors is the shareholders best prescription for equity improvement.

Ms. Heyward Donigan, its refreshingly new CEO, brings in a new pair of eyes and business judgment.  She has acknowledged "execution issues" which is not only encouraging, but 100% true.  Welcome Ms. Donigan.

Background

Investing in Rite Aid (NYSE:RAD) beginning in 2000 and routinely visiting those stores locally in the Manhattan area until 2003, nationwide store visitation began soon after I moved to Florida where Rite