Valeo Read Carefully

Valeo SA SPONS ADR (VLEEY.PK) announced Q3 results with the headline "Good Resistance in a difficult environment". Valeo is a European auto parts concern. The press release was written by someone who speaks very good English but who also comes to English as a second language. Having said that the - press release needs to be read very closely. They are shifting work potentially to French and Polish factories from their German location. They are ramping up their India operations. All this commentary without much qualification.

But here is the kicker as it relates to the Chairman of the Board – you know those guys that represent the shareholders – read this quote

“In addition, the Board of Directors confirmed the eventual compensation to be paid to the Chairman in the event of his departure, as approved by the Annual General Meeting, the Board having taken note of a letter from the Chairman dated October 2, 2008 in which he renounced the application of his employment contract (including the non-competition clause) were he to benefit on his departure from his compensation as a legal representative.”

Just what are they referring to? This is anything but clear. The only viewpoint that I can arrive at is that the chairman does not always have his eye on the Valeo ball. There should be no question that the Chairman is focused on the company that he is leading. This is definitely disclosure and transparency challenged.