Finance Analyst

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Section I: Corporate Governance & Stockholder Analysis
Task 1: Chief Executive Officer Analysis
1. Who is the CEO of the company? How long has he been CEO? Peter L Lynch since 2004
2. If your firm is a family-run company, is the CEO part of the family? If not, what career path did the CEO take to get to the top? (Did he or she come from within the organization or from outside?) Winn-Dixie began as a family-run company, but with huge amounts of growth the company has outgrown its initial family roots. Mr. Lynch was an outside acquisition to the Winn-Dixie family. Mr. Lynch’s career path took him through various other grocery organizations. He served as President and Chief Operation Officer for Albertsons Inc. from 2000 to 2003 (Companies, 2009). 3. How much did the CEO make last year? What form did the compensation take (breakdown by salary, bonus and option components)? Base Salary: $1,250,000.00

Cash Bonus: $1,344,875.00
Deferred Comp:$ 318,733.00
Total: $2,857,005.00 (Equilar)
4. How much stock and options in the company does the CEO own? 400,000 (Forbes)

Task 2: Board of Directors Analysis

1. Is this a company where there is a separation between management and ownership? If so, how responsive is management to stockholders?

According to Business Week, the shareholder’s of Winn Dixie own a larger percent of the organization than shareholder’s of other grocery’s. As such, Winn Dixie’s ownership’s goals align with the goals of their shareholders. The 347,339 shares they control represents 1.78% of the total outstanding shares (Business Week, 2009).

2. Who is on the board of directors of the company? How long have they served as directors? Peter Lynch – Chairman of the board 5 years, Evelyn Follit 4 years, Charles Garcia 4 years, Jeff Girard 4 years, Yvonne Jackson 4 years, Gregory Josefowicz 4 years, Terry Peets, Richard Rivera, and James Olson 4 years (Winn-dixie).

3. How many of the directors are “inside” directors (i.e., employees or managers of the company)? The only inside director is Peter Lynch the CEO

4. How many of the directors have other connections to the firm (as suppliers, clients, customers)? None

5. How many of the directors are CEOs of other companies? 4 (Winn-dixie).

6. Do any of the directors have large stock holdings or represent those who do? The directors have large stock holdings (Yahoo Finance).

Task #3: Stockholder Analysis

1. How many stockholders does the company have? 54.5 million (Reuters)

3. What percent of the stock is held by: (1) institutional investors; (2) employees (including employee pension plans); and (3) insiders (where, besides the managers and directors, anyone with more than 5% is treated as an insider)?

Major Holder breakdown.
Shares Held by Insiders: 1%
Institutional & Mutual Fund Owners: 86% (Yahoo Finance).

4. Who are the insiders in this company, and what role do they play in running the company?

The insider within Winn Dixie is Peter Lynch the CEO

Have the insiders been buying or selling stock in this company in the most recent year? No selling or buying transactions were noted.

4. Are there differences in voting rights across shares? No, each share is allowed one vote (Money) If so, do incumbent managers own a disproportionate share of the voting shares?

Task #4: Bondholder Concerns:
1. Does the firm have any publicly traded debt? Winn Dixie does not have any current publicly traded debt (Quicktake).

2. Are there any bond covenants (that you can uncover) that have been imposed on the firm as part of the Borrowing? No

3. Do any of the bonds issued by the firm come with special protections against stockholder expropriation? No bonds currently issued

Section II: Financial Statement Analysis
The objective of this section is to assess the financial condition of the company. Key...
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