The losses were attributed to Haart’s office’s “huge increase in corporate costs and expenses which have completely wiped out the solid results produced by the traditional business, without producing any appreciable results.” A large portion of the costs “were representation and entertainment expenses almost entirely attributable to the CEO” and “never authorized by the board and well beyond budget.” While admitting the pandemic contributed to Elite’s “severe financial stress,” the executives in the letter state they do not believe it was the main driver of “a huge deterioration of the company’s profitability, with the EBITDA going from $6 million in 2018 to a loss of $6.1 million in 2019 (the first year of your tenure as CEO and before the pandemic crisis), a loss of $20.5 million in 2020 and a loss of $10.4 million in 2021.” 10 is attached as an exhibit, signed by Elite World Group’s chairman Scaglia and deputy chairman Paolo Barbieri and addressed to Haart, in which they inform her of her dismissal as CEO “in the best interest of the organization.”
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