No doubt some shareholders have already read this-still I include it below.
Where to begin?
First, the veiled description that so-called 'bonuses' were awarded for "achievement of certain performance goals that occurred in 2012...."
And what pray tell would those be? That the recipients were able to breathe without the benefit of an oxygen tank,?
Or that the current trading price circa $3.23 is a whopping 13 CENTS above what it was on Nov. 20, 2008, at the trough of the market malaise, when that day's closing pe was $3.10? Let's see. In the span of a bit motre than four years that's a stock price appreciation of about 4%, or 1% per year, not taking into account of course that in early 2006, for example, the stock rice was SEVERAL HUNDRED PERCENT HIGHER. Now that's a record for which TINY management can be so proud!
And next the ludicrous justication that said bonuses wee given 'to provide market competitive total compensation." Right, le absent the wholly unmerited 'bonuses, these named savants would have taken their 'talents' elsewhere? Like what other outfit would hire those people who have so grossly mismanaged this company? Instead, the only move they ought to take it to try to avoid having the door hit them in their collective backsides as they exit company headquarters!
In sum, these geniuses should not have been given a cent in bonuses, rather steep paycuts ought to have been in order. Too, look at the history over the last year or so of insider transactions, with the trend in the share selling mode, not buying.
What a joke!
Change in Directors or Principal Officers
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On December 6, 2012, the Compensation Committee (the "Committee") of Harris & Harris Group, Inc. (the "Company") awarded bonuses for 2012 in the amount of $45,000, $35,000, $35,000, $35,000 and $23,000 to each of Douglas W. Jamison, Chairman, Chief Executive Officer and Managing Director; Daniel B. Wolfe, President, Chief Operating Officer, Chief Financial Officer and Managing Director; Alexei A. Andreev, Executive Vice President and Managing Director; Misti Ushio, Executive Vice President and Managing Director and Sandra M. Forman, General Counsel, Chief Compliance Officer, Director of Human Resources and Corporate Secretary, respectively. The bonuses were awarded based primarily on achievement of certain performance goals that occurred in 2012, and to provide market-competitive total compensation for the named executive officers based on market data provided by the Committee's independent compensation consultant. The Committee believes that retention of key employees is crucial because of the specialized nature of our business and because increasingly our investment professionals have investment track records.
In general, we have historically refrained from increasing base salaries, other than cost of living adjustments, from year to year, even when market data has supported an increase, and have used the ability to provide bonuses at the end of the year to provide market-competitive total compensation. We believe that this strategy has provided management and the Committee with the greatest flexibility in managing expenses.