Sealaska Board Chair Richard Tashee Rinehart Answers Shareholder Questions
Wednesday, September 18, 2024

Newly appointed Sealaska board chair Richard Tashee Rinehart recently took time to answer shareholder questions surrounding board progress, priorities and commitments as the board and management collectively look toward the corporation’s next few years. 

Rinehart highlighted the addition of descendant shares, elder stock and the transition out of the timber industry as monumental progress brought about by the board of directors in alignment with shareholders’ vision for Sealaska, Southeast and the world.

“If we look over the last five to seven years, it’s the most profitable period in our history,” Rinehart said. “We are able to take those funds now and use them to do things that are good for shareholder benefits.”

With those benefits in mind, Rinehart’s top priority is to hire a president for Sealaska. “We’ve already made the change where we no longer have an executive chair or a working chair. I’m just the chairman,” said Rinehart. “I’m not an executive of the company; I’m just on the board. Our next step is to hire a president to run the mission side of our business.”

Rinehart shared a sense of pride that he and the rest of the board have in progress made on the business side: “We’re becoming a global leader in seafood, starting in Europe and then we’re bringing it back to the U.S. right now. We have a global presence in wind energy, and we’re more profitable than we’ve ever been.”

Under Rinehart’s leadership, the board aims to continue improving Sealaska’s financial foundation through the following commitments:

• Within the next five years, our goal is to achieve $1 billion in assets on Sealaska’s balance sheet and $100 million in annual EBITDA from our operating businesses
• Utilize those profits to do all we can to improve the lives of shareholders.

“That’s where we need the new executive, the president,” said Rinehart, “to come in and run the mission side of ‘How do we change our shareholders lives for the better?’”

For Rinehart, it starts with transparency. He wants to emphasize communication in his new position with Sealaska and will continue to answer shareholder questions, a full list of which can be found below, on an ongoing basis. Shareholders can contribute their questions to this list by emailing questions@sealaska.com.

Additional leadership Q&As

Q: What are the roles and responsibilities now held by Richard as the new chair of the board? 
A: The chair of the board is the chief officer of the board of directors. As such, the chair leads the board in executing its fiduciary duties and ensures that the board operates in compliance with its bylaws and policies as well as state and federal laws.  

Primary duties of the chair include: 

• Leading board meetings and facilitating board discussions to ensure that each board meeting is run effectively, and that the business of the corporation is dealt with in an orderly, efficient and expeditious manner. 
• Ensuring that the board sets strategic direction for the corporation. 
• Representing and speaking on behalf of the board at shareholder meetings. 
• Acting as a direct liaison between the board and management, communicating board decision to management where appropriate. 
• Serving as an ex officio member of each committee and subsidiary board (excluding the nominations committee in years where the chair is eligible for reelection). 

Q: Why not have a traditional president/CEO?  
A: These recent changes allow Sealaska executives to narrow their scope of focus and deepen their impact in each of their specialized areas. This strategic approach enables the organization to leverage the strengths of its leadership team more effectively, rather than adhering to a traditional president/CEO structure.  

As the CEO of Woocheen, Terry Downes demonstrated the ability to effectively manage Sealaska’s business investments, recently exemplified by our 2023 consolidated net income which reached $10 million – a 13% increase from 2022. Additionally, the separation of the president and CEO roles reflects a proven model that has generated success at other ANSCA corps, including Cook Inlet Regional, Inc. (CIRI) and Bering Straits Native Corporation. 

Q: What is the reason for filling the CEO position at the time? 
A: As the board looks to move forward on the recruitment of a president for Sealaska, the board desired that there be additional clarity and division of responsibilities between the president and CEO positions. The president’s position and responsibilities will be separate from those taken on by Terry Downes as Sealaska’s CEO. 

Q: Is there going to be an open recruitment for the president position?  
A: Yes, Sealaska will be partnering with a third-party firm to manage the recruitment process for the president position. A strong preference will be given to Sealaska shareholders who meet the qualification and align with Sealaska’s vision and values. 

Q: What is Joe Nelson’s official title and role now? 
A: Joe Nelson will serve as Sealaska’s Interim president, effective immediately. Joe continues to play a vital role in guiding the organization’s strategic direction and will work closely with the newly elected board chair to ensure a smooth internal transition. 

Q: Why were comments limited on the social media announcement? 
A: Shareholder feedback is highly valued. Due to the significance of the recent leadership announcements, we encouraged shareholders to direct their questions to the most appropriate channels to help expedite the internal review process for responses.

We have heard your feedback, and Sealaska’s leadership team would like to reaffirm our commitment to maintaining transparency with our shareholders. We look forward to engaging in constructive, meaningful dialogue through the appropriate channels, where we can address your concerns thoroughly and efficiently. Your input is essential to our growth, and we appreciate your understanding as we work to streamline communication. 

For any inquiries, please feel free to email us at questions@sealaska.com, and we will respond as promptly as possible.