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by 10.02.2008
Posted In: Business at 04:33 PM | Permalink | Comments (0)
 
 

Cintas Execs Face Backlash

An institutional shareholder at Cintas Corp. will make a motion at the company’s annual meeting later this month seeking to have an independent chairman appointed to its board of directors to improve oversight and increase company performance.

Representatives for the North Carolina Retirement Systems (NCRS), which represents the pension investments of retired North Carolina state employees, said objective oversight is needed at Cintas to represent shareholders and “reverse a five-year trend of underperformance.”

At the company’s annual meeting on Oct. 14th, the pension fund will also support a proposal seeking an advisory shareholder vote on executive pay and will oppose appointing nominee David Phillips to the firm’s board of directors.

The various proposals are supported by Risk Metrics/ISS Governance Services and Glass Lewis, which offer proxy services to institutional shareholders.

Although Cintas is the largest uniform rental company in North America, its stock has underperformed the S&P 500 and its peers for the past five years, according to pension fund representatives. Cintas’s share price is down 18 percent during that period, while shares of its largest publicly-traded competitors are up 83 percent and 4 percent respectively.

Also, Cintas has lost market share in recent years, a trend that accelerated in 2008.

“These proposals offer an opportunity to make real change at a company that is underperforming and failing to address the concerns of shareholders,” said State Treasurer Richard Moore, who manages NCRS, in a prepared statement. “I encourage other institutional investors and shareholders to vote for these proposals and for improved governance at Cintas.”

Some shareholders contend that current Board Chairman Richard T. Farmer and his son, Cintas CEO Scott Farmer, have stacked the 11-member board of directors with friends and close associates that too closely follow the Farmer family’s directives. Cintas began as a private company started by Richard Farmer’s grandfather in 1929, before it was taken public in 1983.

Another institutional shareholder, CtW Investment Group, first proposed blocking Phillips’ appointment to the board due to what it described as an undisclosed conflict of interest and weak leadership in his role as the company’s Nominating and Corporate Governance Committee chairman.

“As lead director and chairman of the Nominating and Corporate Governance Committee, Mr. Phillips bears responsibility for many of the company’s questionable governance practices, which include … inadequate response to legitimate governance concerns,” Michael Garland, a CtW executive, wrote in an Oct. 1 letter to other shareholders.

The letter continues, “As discussed above, nominee Phillips serves as trustee of Cincinnati Works, which received over $200,000 in charitable contributions from foundations controlled by insiders and affiliates of the Company. We question the need for the Company to engage in such significant charitable contributions with one of its directors, especially considering the amount of such contributions as a percentage of Cincinnati Works’ annual revenue.”

In July, yet another institutional shareholder — the Manville Personal Injury Settlement Trust — filed a lawsuit alleging the firm’s board of directors isn’t fulfilling its fiduciary duties and fosters a corporate culture that ignores safety regulations.

At least 10 Cintas facilities nationwide have been cited for safety violations by the U.S. Occupational Safety and Health Administration (OSHA) in just over the past year.

OSHA imposed a $2.78 million fine against Cintas last year for violations that led to the death of Eleazar Torres-Gomez at the company’s laundry facility near Tulsa, Okla., in March 2007. Gomez died after he jumped onto a conveyor belt to dislodge clothes and was dragged into an industrial dryer, where he burned to death.

Federal and state inspectors have issued citations against Cintas facilities in Alabama, Arkansas, California, Illinois, Indiana, Ohio, Texas and Washington.

Since 2003 Cintas has been cited for more than 170 OSHA violations in its facilities, including more than 70 citations that OSHA deemed could cause “death or serious physical harm.”

Cintas representatives say the company has adequate safety procedures and blame the accidents on workers who don't follow their training on how to handle machinery.

Based in Mason, Ohio, Cintas is the largest uniform supplier in the United States. Cintas reported $531 million in profits for the 2008 fiscal year, which ended in May.

— Kevin Osborne
 
 
by Kevin Osborne 05.01.2012
 
 
osha

Morning News and Stuff

A federal investigation into a January construction accident at the Horseshoe Casino site is now completed and the fines in the case have been reduced. The Occupational Safety and Health Administration originally imposed $108,000 in fines, but has since cut that amount in half. Thirteen workers were injured when a concrete floor they were pouring gave way. Four firms were cited in the mishap.

An article in a journal published by the American Heart Association states that a review of eight cases indicates the use of electrical stun guns by police can cause cardiac arrest. Douglas Zipes, a physiologist with Indiana University, wrote the article that examines the effects of the Taser X26 ECD. At least three people have died locally in recent years after being shocked by Tasers, most recently a North College Hill man who was shocked at the University of Cincinnati last August. Police in Colerain Township and Fairfax have stopped using stun guns, but Cincinnati police officers still use the devices.

A single woman who used artificial insemination to become pregnant has filed a federal lawsuit against the Archdiocese of Cincinnati after she was fired from her teaching job at a Catholic school. Christa Dias, who was fired in October 2010, isn't Catholic and says she wasn't aware of the church's teachings against the procedure. She taught computer classes and had no ministerial duties at the school. Employment law experts expect the issues involved in the case will attract national attention and could set a precedent.

Nine local schools will receive part of a $21 million federal grant given to the state of Ohio to help improve low-performing schools. The Cincinnati facilities that will get aid are Rothenberg Preparatory Academy, Woodward Career Tech High, South Avondale Elementary, William H. Taft Elementary, George Hays-Jennie Porter, Schroder Paideia High, West Side Montessori High, Oyler and the district's Virtual High School. Local school officials say the grant money has been used the past two years to take all but one school out of the “academic emergency” classification.

Cincinnati City Council could vote as soon as Wednesday on a proposal to extend insurance benefits to the same-sex partners of city employees. A council committee voted 8-0 Monday to give tentative approval to the plan, which was lobbied for by Councilman Chris Seelbach, the first openly gay man to serve on the group. The benefit is expected to cost the city between $300,000 and $540,000 annually, depending on how many claims are filed. Councilman Charlie Winburn, a Republican and evangelical Christian minister, abstained from the vote.

In news elsewhere, documents seized from Osama bin Laden's hideaway in Pakistan after his death reveal the terrorist leader was worried about al-Qaeda's image. The records show bin Laden trying to reassert control over factions of loosely affiliated jihadists from Yemen to Somalia, as well as independent actors whom he believed had sullied al-Qaeda’s reputation and muddied its central message. Bin Laden was killed in a raid by Navy SEALs on May 2, 2011.

British lawmakers said today that global media tycoon Rupert Murdoch is unfit to run a major company and should take responsibility for a culture of illegal telephone hacking that has shaken News Corp. A parliamentary committee said Murdoch and his son, James, showed "willful blindness" about the scale of phone-hacking that first emerged at Murdoch's News of the World newspaper. In the United States, Murdoch owns the Fox News Channel, The Wall Street Journal and The New York Post.

President Obama expressed support Monday for the blind Chinese dissident at the center of a standoff between Beijing and Washington. Speaking at a press conference, Obama said he wouldn't address specifics of the Chen Guangcheng case, but then went on to urge Beijing to address its human rights record. It's believed that Chen is hiding at the U.S. Embassy in China, but officials have declined to confirm the speculation or whether negotiations are underway.

Although most Republican politicians are united in their opposition to federal health-care reforms known as “ObamaCare,” they disagree on what should replace it, Politico reports. Even after three years of railing against Obama’s plan, Republicans haven't coalesced around a full replacement plan. Although most Republicans support the health law’s requirement that insurance companies accept all applicants, the main replacement plan put forward by the GOP ignores that idea.

Violence continues in Syria between government forces and rebels despite both sides agreeing to a United Nations-sponsored ceasefire. A human a rights group reported 10 civilians were killed in an army mortar attack and 12 soldiers killed in a firefight with rebel gunmen today as U.N. monitors tried to broker an end to the fighting, which has lasted more than a year.
 
 
by Kevin Osborne 09.13.2011
Posted In: Media, Business, Community at 05:41 PM | Permalink | Comments (0)
 
 
circulation 2005-2010

Enquirer Drops by 16 Percent

For once, executives at The Enquirer probably are happy to have the newspaper deemed average.

Jim Hopkins, who operates The Gannett Blog, recently tallied the circulation losses during the last five years at the media giant's 10 largest newspapers. Hopkins compiled the data from Gannett's annual reports to shareholders.

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by German Lopez 10.09.2013
Posted In: News, Business, Economy at 02:14 PM | Permalink | Comments (0)
 
 
city hall

Council Approves Pure Romance Tax Credits

City administration estimates deal will net nearly $2.6 million in tax revenues over 20 years

Oct. 10 update: At its final full session before the Nov. 5 election, City Council on Wednesday approved nearly $854,000 in tax credits for Pure Romance that city officials say will bring the company to downtown Cincinnati for at least 20 years.

Councilman Charlie Winburn, the lone Republican on council, was the only council member to vote against the deal.

Oct. 9 story: City Council’s Budget and Finance Committee on Tuesday approved nearly $854,000 in tax credits over 10 years for Pure Romance in return for the company coming to and remaining in Cincinnati for 20 years.

The city administration estimates the deal will lead to at least 126 new high-paying jobs in downtown Cincinnati over three years and nearly $2.6 million in net tax revenue over two decades.

If the company fails to keep at least 126 jobs after three years or remain in Cincinnati for 20 years, the city will claw back some of the tax credits depending on how egregiously the terms are failed.

Cincinnati in 2011 clawed back tax benefits on its so-called “megadeal” with Convergys after the company failed to keep its total downtown employment at 1,450 or higher.

Pure Romance is a $100-million-plus company that hosts private adult parties and sells sex toys, lotions and other “relationship enhancement” products.

The company was originally planning on moving to Cincinnati with support from both the state and city. But Gov. John Kasich’s administration ultimately declined to provide tax credits, which forced the city to ratchet up its offer from $353,000 to prevent Pure Romance from moving to Covington, Ky., instead of Cincinnati.

Kasich’s administration says the company didn’t fall into an industry the state normally supports, but state Democrats and local officials claim the state government resisted the tax credits because of a “prudish” attitude toward a company that sells sex toys.

“We welcome Pure Romance to the city of Cincinnati,” Vice Mayor Roxanne Qualls said at the committee meeting. “We are glad that the city administration and Pure Romance were able to work out an arrangement that actually welcomed them to the city.”

Pure Romance previously told CityBeat that it hopes to move its headquarters from Loveland to downtown Cincinnati by the end of the year, but the move hinges on whether the company can quickly finalize a lease agreement.

 
 
by Kevin Osborne 01.11.2012
 
 
eric kearney

Kearney Introduces Jobs Bill

After a few months of preparation, two Ohio legislators today formally introduced an economic development plan that a nonpartisan group has said could create up to 16,000 jobs in the state.

State Sens. Eric Kearney (D-North Avondale) and Nina Turner (D-Cleveland) have submitted Senate Bill No. 278, known as “Forward Ohio,” for the State Legislature’s consideration.

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by German Lopez 08.13.2013
Posted In: News, Abortion, Business, Pensions at 09:01 AM | Permalink | Comments (0)
 
 
vote logo

Morning News and Stuff

Pension amendment to appear on ballot, city cuts ties with SoMoLend, heartbeat bill returns

A tea party-backed pension amendment yesterday cleared the hurdle of 7,443 petition signatures required to appear on the November ballot. Cincinnati for Pension Reform, the group behind the amendment, had previously paid nearly $70,000 to petitioners to gather signatures. The amendment would privatize pension plans so the city and city employees hired after January 2014 would contribute to individual retirement accounts that the employee would then manage by independently selecting investments. That’s a shift from the current system in which the city pools pension funds and manages the investments through an independent board. But unlike private-sector employees, city workers might not qualify for Social Security, which means they’ll lack the safety net that typically comes with risky 401k-style plans. If workers do qualify for Social Security, the city would have to pay into the federal entitlement program, which would cost the city more money, according to an Aug. 5 report from the city administration.

Cincinnati is cutting ties with SoMoLend, the local startup that had previously partnered with the city to connect small businesses and startups with $400,000 in loans. SoMoLend has been accused of fraud by the Ohio Division of Securities, which says the local company exaggerated its performance and financial figures and lacked the proper licenses to operate as a peer-to-peer lending business. The Division of Securities won’t issue a final order until after a hearing in October. SoMoLend’s specialty is using crowdfunding tactics to connect small businesses and startups with lenders.

Ohio Republicans are considering bringing back the “heartbeat bill,” the controversial anti-abortion bill that would ban induced abortions after a heartbeat is detected, which could happen as early as six weeks into a pregnancy. The bill could be reintroduced next week. That would come just a couple months after Republican legislators and Gov. John Kasich approved a slew of anti-abortion measures through the two-year state budget.

The Ohio Senate will today hear testimony from the Health Policy Institute of Ohio about projections that show the state could save money if it takes up the Medicaid expansion. As part of Obamacare, states are asked to expand their Medicaid programs to include anyone at or below 138 percent of the federal poverty level. In return, the federal government will pay for the expansion for the first three years and wind down to paying 90 percent of the costs after that. The Health Policy Institute previously estimated the expansion would save Ohio roughly $1.8 billion and insure nearly half a million Ohioans in the next decade.

Councilwoman Laure Quinlivan is touting Cincinnati Safe Student Housing, a website that allows university students to pick from housing options that passed a free fire inspection. The website was unanimously approved by City Council following several university students’ deaths to fires, which council members argue could have been prevented with stronger standards.

The new owner of the former Terrace Plaza Hotel says he will reopen the building as a hotel. Alan Friedberg, managing principal of the company that bought the building earlier this year, says the process of bringing back the building will take a lot of time and work, considering it’s now been vacant for three years.

Four Greater Cincinnati hospitals have been recognized for protecting the LGBT rights of patients and employees by the Human Rights Campaign Foundation: Bethesda North Hospital, Good Samaritan Hospital, the Veterans Affairs Cincinnati Medical Center and Cincinnati Children’s Hospital Medical Center.

Ohio Attorney General Mike DeWine rejected a ballot initiative that would have legalized marijuana in Ohio. DeWine claims the summary for the ballot initiative is untruthful and leaves out various important details.

Mason, a Cincinnati suburb, was ranked one of the top 10 places to live by CNNMoney. Maybe CNN really likes Kings Island.

Ohio Sen. Sherrod Brown was in Cincinnati yesterday to call on the U.S. Department of Veterans Affairs to expedite processing on benefit claims. The VA currently has a backlog of 500,000 veterans, according to a press release from Brown’s office.

Introducing Elon Musk’s Hyperloop, a proposal for a railway system that would use high-pressure tubes to shoot passengers around the country. It’s estimated traveling from Los Angeles to San Francisco, which normally takes about five and a half hours, would only take 30 minutes in the tubes.

 
 
by 10.30.2008
Posted In: 2008 Election, Public Policy, Business at 01:39 PM | Permalink | Comments (1)
 
 

Apparently Size Does Matter

Politics is often a game of strategy, and an area anti-tax group is well-known for taking the offensive on most issues it advocates. A recent dispute over a referendum on a payday loan law, however, has the group facing stinging criticism for getting its facts wrong and overstating its own influence.

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by Kevin Osborne 01.26.2012
Posted In: Business, Development, Urban Planning at 03:04 PM | Permalink | Comments (0)
 
 
fountain

Vendors Sought for Fountain Square

Tuesdays will be market day at downtown’s Fountain Square beginning in late spring and lasting until early fall. And to fill the market, the group that manages the plaza is accepting applications from interested vendors.

The Cincinnati City Center Development Corp. (3CDC) will operate the market for 21 weeks, from May 1 to Sept. 25. The midday, mini-market will be open from 11 a.m.-2 p.m.

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by 11.17.2010
Posted In: Congress, Business, Family at 04:16 PM | Permalink | Comments (1)
 
 

Senate Kills Paycheck Fairness

A bill that supporters say would've ensured women are paid the same as men for doing the same work was blocked today by the U.S. Senate in a 58-41 vote. All Republican senators — including George Voinovich from Ohio — voted against allowing debate on the bill.

The bill, known as the Paycheck Fairness Act, was approved by the House in January 2009 and was supported by President Obama.

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by 02.24.2011
Posted In: Social Justice, Business, Financial Crisis at 03:12 PM | Permalink | Comments (0)
 
 

American Inequality at a Glance

There was a period of time in U.S history, roughly for 30 years after the Civil War, known as “the Gilded Age.” The American economy grew at an unprecedented rate as the nation transformed itself from an agrarian society into an industrial one.

But the transformation's downside included excessive displays of wealth and captains of industry who grew their fortunes on the backs of exploited and mistreated workers. The government ignored the situation, as the era gave rise to the concept of “social Darwinism.”

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