Business Context and Reporting Period
Company: Optical Cable Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: December 3, 2001
Reporting Period: Specific event date (December 3, 2001)
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on corporate governance and personnel changes.
Material Changes
- Executive Removal: The Board of Directors removed Robert Kopstein from his positions as President, Chief Executive Officer, and Chairman.
- Reason for Removal: The Special Committee discovered that Mr. Kopstein had pledged substantially all of his personally-held unregistered shares to secure substantial personal margin loans from several brokerage firms.
- Leadership Transition: Neil Wilkin, Senior Vice President & Chief Financial Officer (joined September 1, 2001), assumed the role of Acting President.
Guidance, Outlook, and Risks
Management Commentary: The Board acted upon the recommendation of an independent Special Committee formed on October 2, 2001, to address issues regarding Mr. Kopstein's share pledges.
Risks and Contingencies: The filing highlights a significant governance risk involving the former CEO's personal financial leverage against company stock, which prompted immediate executive action.
Investor Verification Checklist
- Verify the extent of Mr. Kopstein's share pledges and the status of the margin loans.
- Confirm the timeline of the Special Committee's investigation initiated on October 2, 2001.
- Monitor for the appointment of a permanent successor to the President and CEO roles.
- Review subsequent filings for any financial impact resulting from the executive transition or share pledge issues.