B&D to investors: Golf project presents no conflict

As the Stanley-Black & Decker merger vote approaches, Black & Decker reacted to concerns regarding a private business relationship between its head officer and one of its directors.

According to a release by Black & Decker, both Black & Decker chairmen, president and CEO Nolan Archibald and M. Anthony Burns, a member of the Black & Decker board of directors are co-owners of a real estate development project known as Red Ledges, a private golf and four-season recreation community being developed in Heber City, Utah. Both Archibald and Burns have been co-owners since 2005.

In question is whether or not the private business relationship affects Burns’ independence as a director. The company said both Archibald and Burns disclosed the business relationship at the inception of the Red Ledges project to council, and the council determined that the relationship did not impede Burns’ independence as a board member under the standards as applied by Black & Decker.

“Neither the recommendation of the Black & Decker board of directors nor the terms of Mr. Archibald's compensation with Stanley as executive chairman were influenced by the relationship of Mr. Archibald and Mr. Burns in the Red Ledges project,” the company said in a press release March 9.

The vote to consider the merger of Black & Decker and Stanley Works is scheduled for March 12.