Last week I read with interest the proposal to the shareholders of SAIC from the board regarding elimination of the preferred class of stock and conversion of all such shares to common stock. I gather there has not been a lot of employee opposition to this. I for one feel that, given the fact that SAIC is now a public company and subject to all kinds of rules and regulations, it would probably be beneficial to the shareholders to have the stock totally liquid. This a major step for SAIC, and it’s one I opposed when I was chairman of the board — knowing that this is eventually what would happen and feeling that we could continue to manage SAIC as an employee-owned company.
The only disadvantage I see for the shareholders who hold preferred stock has to do with their voting rights — they sacrifice their current 10:1 voting preference. As far as I can see, they will not lose economic value with the change. This is what I think as of today. If I was a preferred shareholder, I would check with my financial advisor on whether I was giving up anything else. I guess you have some time to make your decision.
Last weekend was very eventful and interesting for me. Sunday was opening day at the yacht club and we entered Solutions in the annual competition for best boat. The crew that maintains Solutions worked overtime getting everything ready — there wasn’t a speck on it. As a result, we won an award for best boat in class as well as best overall boat in the competition. I now have a nice plaque to mount on the boat indicating this accomplishment. About 50 people paraded down to the dock to look at the boat and marvel at its beauty. I have included some photos of the event. I would like to thank Ron Arnold — the skipper of Solutions — who worked tirelessly to get the boat into Bristol shape, along with the rest of the crew.
I was asked by SAIC to write some words on the occasion of the company’s 40th anniversary. I thought you might find my letter to SAIC’s employees to be of interest if you haven’t already seen it:
To the Employees of SAIC:
It’s hard for me to believe that just 40 years ago, a small handful of scientists and I founded this great company known as SAIC. In our first fiscal year of operations, the company’s revenue was just about $250,000. This year, revenues will reach $10 billion. That is a remarkable number to me. Little could I ever dream that this company we built with much dedication, hard work, and talent would experience success of this magnitude.
But, when I take time to reflect, I know that I should not be surprised at all. Without exception, SAIC’s employees are among the most innovative, the smartest, and the most entrepreneurial people in our nation. SAIC was created to solve complex problems of national importance, applying the unshakable core values of ethics and integrity. We never shrank from our duty to our great nation, indeed, we embraced it. This has been the case since Day One, and it is still the case today.
I am personally honored to congratulate each one of you who have helped build this great employee-owned company of ours. I have had the good fortune to work with many of you over the years. And while I toast the success we have enjoyed over the past 40 years, I know that SAIC, and the men and women who are its true heart and soul, will continue to lead the way in innovation and value to our customers for the next 40 years, and beyond.
I salute you.
J. Robert Beyster
Founder, SAIC
Chairman, The Foundation for Enterprise Development
www.fed.org
