Dillard's investors call for removal of executives

NEW YORK In a letter sent to Dillard's board of class B directors, investors Barington Capital Group and Clinton Group called for the ousting of the Dillard family from any managerial positions with the company, citing poor performance and inexperience.

"In our opinion, a management team with a comparable record of poor performance at any other company would have been fired long ago," the investors wrote. "As significant shareholders of Dillard's, we therefore call upon you to work with the board's Class A directors to immediately begin the process of looking for a new ceo."

Dillard's is lead by William Dillard, II, who serves as chairman and ceo. According to Barington Capital Group and Clinton Group, citing an independent report, Dillard's average three-year compensation of about $5.3 million is 54% above the median paid to ceos at peer companies, and the salary paid to the company's other executive officers (also members of the Dillard family) is 185% above the average three-year compensation paid to executives at similar companies.

The investors noted Dillard's performance over the past 10 years, pointing to its recent removal from the S&P F500 Index and the fact that it has not posted an increase in annual comparable-store sales since fiscal 1999.