Steven Myers, the founder, largest shareholder and former chief executive of Newport Beach-based SM & A;, is waging a proxy battle to change the management of the aerospace and defense consultant.
Myers on Monday said he and three other candidates plan to run for SM & A;’s board, saying poor management of the company has caused its stock to fall 40% in the past year.
The company has a market value of about $90 million.
“In my view, SM & A;’s stock price is well below its intrinsic value. A better-qualified board is needed to provide the expertise and guidance necessary to help SM & A; realize its full business potential,” Myers said.
Myers, who owns 15.8% of the company, plans to nominate Kenneth W. Colbaugh, Albert S. Nagy, and Redge E. Bendheim as director candidates at the company’s annual meeting on May 6.
The group accuses SM & A;’s chief executive officer, Cathy McCarthy, of “inappropriate financial guidance” on conference calls, poor sales and handling of funds as well as losing key senior personnel.
Earlier in the month the stock lost a quarter of its value following a disappointing fourth-quarter earnings report.
McCarthy, 60, took over the company last July after replacing Cynthia Davis who resigned after four months on the job.
She’s one of a few women to lead a publicly traded company here.
McCarthy was SM & A;’s president and COO, and, according the company, turned it around and brought it to record growth during the first half of 2007.
Myers, 61, founded SM & A; in 1982, and served as its chairman and chief executive officer until he retired in March last year.
In January, former chairman of the Joint Chiefs of Staff, Peter Pace, was hired as a consultant to the company and as a member of its board. He is not being proposed by Myers for replacement.
The four directors Myers proposes be removed are William C. Bowes, John P. Stenbit, Joseph B. Reagan and Robert J. Untracht.
SM & A; is hired by companies to help them win government contracts.
