Strathmore Capital Calls on Tejon Ranch to Significantly Reduce G&A and Prioritize Free Cash Flow

Core Viewpoint - Strathmore Capital urges Tejon Ranch's Board to enable CEO Matthew Walker to implement significant reductions in general and administrative expenses and prioritize free cash flow production to enhance shareholder value [1][4]. Group 1: Management Changes - Strathmore Capital commends the appointment of an interim CFO as a step towards reducing executive overhead, indicating a move towards fiscal responsibility [1]. - The company currently employs five Vice Presidents of Real Estate, raising questions about the necessity of maintaining multiple positions given the passive nature of its income streams [2]. Group 2: Cost Reduction Recommendations - Strathmore Capital calls for wholesale changes to reduce corporate waste, including a reduction in the size of the Board, which currently has ten members, to achieve immediate cost savings [3]. - The consulting contract awarded to the former CEO, valued at approximately $1 million annually, is viewed as an unnecessary expense contributing to corporate waste [3]. Group 3: Shareholder Engagement - Acknowledgment is given to CEO Walker's efforts to engage with shareholders, which is seen as a positive step towards rebuilding trust and delivering long-awaited value [4]. - Strathmore Capital emphasizes that significant cost reductions are necessary for the investor mandate to be achieved, and that changes cannot be made effectively while the former CEO remains on the Board [4]. Group 4: Historical Context - For over four decades, Tejon Ranch has operated with a cost structure that has not prioritized shareholder value, attributed to insufficient investor oversight and accountability [5].