White Electronic Designs Corporation’s (NDAQ: WEDC) earnings conference calls may be turning into more of a soap opera after a hedge fund was jilted. Wynnefield Partners said in a Schedule 13D/A filing with the Securities and Exchange Commission (SEC) that they were unable to ask questions on the company’s conference call despite repeated attempts. As a result, the 9.8% holder then submitted a letter nominating its own directors to the board.

White Electronic Design doesn’t exactly have the best track record with shareholders. The existing board has granted cash-less, dilutive equity awards to management that vest 50% each year without requiring management or the market price of WEDC’s stock, to meet any performance targets or financial metrics. The board also refused to disclose of consider bona fide acquisition proposals at a slightly premium to market in an apparent effort to save their jobs. And finally, the board squandered more than $25 million on two failed acquisitions and a drawn out termination process for its former chief executive.

Wynnefield Partners proposed several changes that it would make at the company to address these concerns:

• Refrain from risking additional shareholder capital on any further acquisitions.
• Provide shareholders with the honest and transparent process that they deserve by exploring the full range of “strategic alternatives”.
• Cease diluting shareholders via the outright grand of “risk-less” equity awards to management that have no performance criteria.
• Implement compensation policies that align the interest of management and the board with interests of shareholders.

"WEDC’s current board and management have presided over a massive destruction of shareholder value," said Wynnefield Partners in its letter to the board. “Why should shareholders believe that the current board now suddenly has the ability to reverse its historical failures and the desire to correct the lack of alignment of its interests with the interests of all WEDC’s shareholders. With the exception of Ed White, virtually no board member has ever purchased a share."