Robert M. Clinger III
Global Communications Solutions, Inc., a closely held and family controlled communications company, was founded in 1925 by Major Sid White to provide Communications equipment to the shipping industry in the United States. The current thirty shareholders are Mr. White’s direct descendants or trusts that hold shares for descendants. The executive management is also comprised mostly of members of the third generation in the White family—the third generation to run the enterprise. In the early days, Global Communications Solutions was not profitable, incurring net losses for several years and forcing additional capital contributions by the founders, but the Company managed to begin generating stable earnings after winning several contracts from the military during World War II, as a result of Major White’s contacts within the Congress and the Department of Defense. Since then, the enterprise has matured, with revenues of over $75 million and net income before taxes of $8 million, and now provides a stable income stream, allowing for reinvestment into the Company and distributions to the shareholders. The current generation of executive management conducts an annual assessment of the Company’s performance and places great emphasis upon the Return on Equity ratio. Recall that Return on Equity is calculated as follows: Continue reading →