After Tyson Foods scion John Randal Tyson was arrested in June on a drunk driving charge — his second alcohol-related arrest in the past two years — he was quickly suspended as chief financial officer of the Springdale-based meatpacking giant. But considering the sway the Tyson family exerts over the company, is a comeback inevitable?
That’s the question The Wall Street Journal somewhat obliquely poses this weekend in a long feature story on the family and “problems with alcohol that have trailed the Tysons for decades.” John Randal’s grandfather, Don Tyson, was a heavy drinker and known for throwing boozy, star-studded parties. Don’s son, John H. Tyson, has admitted to being addicted to cocaine and alcohol in the 1980s, though he’s since sworn off drinking. The Journal writes:
“In another large corporation, I wouldn’t have been allowed to go back to work based on my past behavior,” he said, according to court transcripts.
John has said his last drink was in 1990, the same year his son [John Randal] was born. At the time, he said it took years to fully regain trust and responsibility within the company.
Tyson Foods has never been without a Tyson in control since it was founded in 1935 by John W. Tyson. His son, Don, grew the company into the colossus it is today. John H. took over as CEO in 2000, and, though he stepped down in 2006, has served as chair of the board ever since.
Since Don’s death in 2011, the company has been dominated by John H., 70, known simply as “the chairman.” Five CEOs have come and gone since 2016, the Journal reports — a testament to his mercurial temper and the influence wielded by John H. He’s apparently been grooming his two children, John Randal and his sister, Olivia, to serve on the company’s board.
Tyson Foods is now a Fortune 500 company and the largest meatpacker in the U.S. But in at least one crucial way, it still operates like a family business. The Tyson family “exerts an unusual degree of control” over the company by virtue of a dual class stock arrangement, the Journal reports. That means shares are divided into two different classes, one of which holds much greater weight when it comes to voting.
A broad range of investors holds equity in Tyson Foods, as one would expect for a large, publicly traded corporation. But the Tyson family alone holds 70% of the voting shares. Here’s a breakdown of how the arrangement works from Talk Business & Politics last year:
Tyson Foods’ dual-class share system gives the Tyson family a controlling majority of the voting shares with 70 million Class B shares which carry a 10-1 voting advantage over the 287,815,821 shares of Class A stock publicly owned and traded as of the close of business on Dec. 12. Historically, any proposal not approved by the board does not pass given the Tyson family of which board chairman John H. Tyson is a beneficiary can block the vote with the Class B share advantage.
In other words: If the Tyson family wants John Randal to return to a leadership role, they likely have the leverage to make that happen. But the Journal didn’t make much headway asking about John Randal’s future at Tyson; neither the corporation nor any family members would comment.