SGE1 / Re: SGE1 - WOW! More Homework by you is clearly required
in response to
by
posted on
Apr 14, 2011 04:44PM
The reason for my initial response to you was to clarify that compensation for the BOD was NOT $72K you refereced, but more than 3 times (and in fact more than 4x when you include the now departed BOD members prorated share) that amount.
For fiscal 2011, it will be between $218.4M and $232.8 PLUS the prorated shares of Mistry, Falk and Schrock's compensation through January, which will amount to another $90K or so. Roughly a $300K cash savings COULD have been realized had the BOD taken measures to properly reflect their poor stewardship and instead take compensation in stock rather than from the cash the company needs to survive.
I include Flowers on the originaly list simply because he is a member of the BOD now, though his compensation is for his role as CEO/CFO. I did NOT include his compensation in the BOD $72K financial analysis. As for the bonus issue, I have yet to see the company NOT issue bonuses that are available to be issued, so if you can show otherwise, I'm all ears, but based on their typical M.O., I fully expect that Flowers has received his bonus, and I think you do too.
Essentially, these 3 people will take in roughly $650K for the fiscal year - about $217K per person.
Contrast that to 2009, when eight people took in $1.4M in cash compensation. About $400K went to the 5 BOD members and $1M to 3 management team members - about $175K per person.
Granted it's an improvement in total outlay, but IMO, not really reflective of what's worthy of the performance of those in question or what should be required. Cutting them a break because of how "frustrating it must be to deal with Leckrone" is a kin to talking about "how frustrating it is to lose the 100lbs you gained by eating Ben and Jerry's and McDonalds for 1 year". Sure you had to eat to survive, but you made poor decisions in what you chose to do, so in my opinion, it's a false argument. They need to PERFORM or get replacements that will. Instead, they seem focused more on what the company can do for them, rather than what they can do for the company.