NoticeofResignationfromtheWheatsvilleBoardofDirectors

TotheDirectors,Employees,Owners,andConcernedCustomersofWheatsville:

Ijoinedtheboardatthebeginningofthisyearasadissatisfiedbutoptimisticstaffmember.I
wantedtoworkwithmanagementandtheboardtoresponsiblyandrealisticallyaddressa
growingsenseofdissatisfactionamongstmypeers.However,Ihavedecidedtoresignfromthe
boardeffectiveimmediately,primarilybecauseofmydisappointmentwiththedirectionofour
belovedstore.Ihaveconcernsaboutthetreatmentofstaff,therelationshipbetweentheboard
andtheChiefExecutiveGrocer(CEG),andthestoresfinances.Becauseoftheseconcerns,I
worrythatboththeboardandtheCEGarenolongerfulfillingtheirfiduciarydutiesto
Wheatsvillesowners.

Ihavebeenfrustratedinmyattemptstoaddressorevenpresentevidenceregardingstaff
treatment.BesidesapublicpetitioninMay,theboardhasreceivednumerousprivate
communicationsfromstaffdisplayingevidenceofcronyism,negligence,incompetentor
retaliatorymanagementpractices,andmore.StaffhaveimpliedthattheCEGisawareofthese
concerns,butnottakingsufficientactiontoaddressthem.Sentimentssuchastheseareboundto
impactthevalueofourbrandandtheexperienceofourcustomers.Despitetherelevancetoour
corebusiness,theboardhasconsistentlyignoredrequeststocometoadeeperunderstandingof
staffdissatisfaction.Todate,thereisnoindependent,unbiased(procuredsolelybytheboard)
informationavailableonthetopic.Inmyopinion,itseemsasiftheboardiseitherwillfully
ignorant,orfailingtoadequatelyaddresstheseaffairsinatimely,responsiblemanner.

AlthoughtheCEGhasrecentlyexpressedawillingnesstoadoptsocalledcooperativelivable
wages,hehasstatedmultipletimesinboardmeetingsthatheopposesalivingwagepolicyand
thathisfocusissimplywagesatisfaction,inlieuofatruelivingwage.Ifearhisactionsaimto
merelymollifystaffandconcernedmembers.Ihopethenewcampaignforlivablewagesis
successful,butInowworrythatitwillonlydistractfromlargerculturalconcernswhichmay
poseanexistentialrisktoWheatsville.

Itseemsclearthatthereisanunprofessionaldynamicbetweentheboardanditssoleemployee,
theChiefExecutiveGrocer.Thisdynamicpreventstheboardfromobtaininganunbiased
perspectiveonhisperformance.Althoughtheboardshouldmaintainakind,courteous
relationshipwiththeCEG,theremustbeboundaries.Duringmyterm,Ifeltthatsomeissues
shouldhaveremainedsolelymattersoftheboard,yettheyweresubmittedforinputbytheCEG
withoutmyknowledgeorconsent.Tofacilitatehealthygovernance,itisimportanttoseparate
certaindeliberativeaspectsofanoversightbodyfromtheinstitutionitgoverns.Becauseofa

failuretomaintainappropriateboundaries,Iwasuncomfortableandimplicitlydiscouragedfrom
discussingimportantandsensitivetopicswithmyfellowboardmembers.

Inmyopinion,theunhealthyinteractionbetweentheboardandtheCEGappearstocontributeto
astateofongoinginadequateoversight,particularlyregardingWheatsvillesfinances.Inourlast
meeting,asurprisingcommentaboutunexpectedlosseswassimplyignored.Earlierthis
summer,theboardcameunderpressuretoapproveinvestordividendsinanunprofitableyear
withoutenoughinformationtoassesstheprudenceoftheaction.Despitethesignificanceofthe
issue,accesstorelevantdocumentationwasnotprovideduntilI,themostinexperiencedmember
oftheboard,specificallyrequestedit.Infact,weweregivencommunicationsfromlawyers
supportingmanagementsagenda,inemailsthatseemeduninformedandinsufficienttocommit
Wheatsvilletoreleasefunds,priortoreceivinganysubstantivefinancialdisclosures.Istillfeel
uncomfortableaboutthedecisionandneitherInorthedissentingminoritysupportit.

Recently,IwasapproachedbyanexemployeeoutsideofWheatsville.Heaskedmetoattenda
meetinginwhichmembersandemployeescouldexpresstheirconcernsaboutstafftreatment.I
feltitnecessarytoinvestigateanypotentialbehaviorbytheCEGthatcouldposesignificant
brandrisk,andhadbeendeniedotheropportunitiestogatherthisinformation.Giventhe
importanceofstaffmorale,Ioptedtolistencarefullyanddisclosedmyfindingstotheboard.The
result?IwasadmonishedandreprimandedinfrontoftheentireboardandtheCEG,inspiteof
thefactthatourgovernancemodelallowsustolistentostaff,providedwedonotgivethem
instruction.

ImadeadecisiontonotinformtheboardaboutthiseventpriortoitsoccurrencebecauseIwas
worriedthatcommunicationbetweentheboardandtheCEGcouldhaveputtheemployeesat
riskforgathering.Staffhavespecificallyarticulatedaseriousfearofretaliation.Inhindsight,I
believeIwasrighttodoso,especiallyinlightofthefactthattheCEGhimselftookpartinthis
rebukeandpersonallycriticizedme.Iwasntawareheevenknewabouttheeventnoneofthe
relevantstafforboardcommunicationsincludedhim.Asheistheboardsemployee,andIwas
simplyfollowingmyfiduciarydutytoinvestigatehisperformance,Ifindtheentiresituation
appalling.Beyondthat,therehasntbeenawordofdiscussionaboutthestaffsconcerns.Itis
shockingthatinformationaboutpotentialwalkoutsandunionizationwerecompletelyignored
(regardlessofyourstanceontheseissues,theywouldhighlyimpactandchangetheoperationof
ourbusiness).
Instead,governancepolicies,whichareatooltheboardusestomanagethe
cooperative,weretwistedinordertoreprimandthemessenger.Ifeltdisillusionedandpowerless.
ThisistheprimaryreasonwhyIhavedecidedtoresign,asIfeelitwouldbeunproductiveto
continuecollaboratingingoodfaithwithindividualsunwillingorunabletoreciprocate.

Somedirectorsoftheboardobviouslywanttodotherightthingandinvestigatetheseconcerns,
andalldirectorsappeartobewellintentioned,butperhapshighlymisled,willfullyuninformed,
ormisinformed.Nevertheless,thesituationatWheatsvilleisunacceptableandIdonotbelieve
thatgoodintentionsaresufficient.Givenallofmyexperiences,Iamtrulyworriedthatboththe
boardandtheCEGareinviolationoftheirfiduciarydutiestoWheatsvillesowners.Thereare
claimsthatmembersofmanagementaretarnishingthegoodwillofthecooperativebyactingin
theirowninterests,andIfearthismaybeapervasiveissuethatwillinevitablyruinWheatsville
byinjuringitspublicimageandbrandequity.Giventhefinancialstateofourstore,itsbrandas
atruecooperativeisitsprimaryandmostdistinguishingasset.

Icaredeeplyforeveryoneinvolvedinthisorganization,eventhosewhoseemmisguidedor
shortsighted,andIwantWheatsvilletothrive.Iwantourstafftofeelthevalueandrespectthey
deserve.AssumingWheatsvillesmembersagreetoretaincurrentleadership,Ihopethatthe
individualsinchargecanbeginmakingtherightdecisionsforthestaffandthecooperativeasa
whole.

Sincerely,

AllisonMaupin

October2nd,2015