Martin Capital recommends Emmis directors not stand for re-election

By Lisa Kerner

Charlotte, N.C., July 10 - Martin Capital Management, LLP sent a letter to Emmis Communications Corp. lead director Susan B. Bayh and the company's independent directors blaming them in part for the "long-decaying destiny of Emmis" resulting from a "serial travesty of corporate governance."

The letter was included in a schedule 13D filed with the Securities and Exchange Commission.

In the letter, Martin highlights Emmis' stock price since Emmis debuted as a public company in March 1994.

"The compounded total return to the investor during the company's 14-year life as a public company has been negative," the letter stated.

"Inflation and all, the investor would have been better off burying his money in a coffee can in the backyard for a decade and a half," Martin's letter noted.

Martin urged the directors to opt to not stand for re-election at the company's July 15 annual meeting.

"At the least you will absolve yourselves of further complicity in a sordid saga that may not end well," Martin said in the letter.

Martin also recommended the company divest its operating assets and distribute the proceeds to shareholders so that all shareholders "benefit equitably and optimally."

If chief executive officer Jeffrey H. Smulyan opposes the plan, Martin said he should be replaced.

Emmis is an Indianapolis-based diversified media company.

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