In the original and much better movie "Wall Street" obnoxious/arrogant corporate raider/Wall Street pirate/lamprey Gordon Gekko is trying to contact the CEO of a company that he is harassing. However, the CEO is unavailable because he's on a lecture tour. GG is NOT a role model, it is simply a funny moment that seems somewhat applicable to AMRI.
GG: "What the hell's Cromwell doing giving lecture tours when his company's losing 60 million a quarter? I guess he's giving lectures on how to lose money..."
After bulachmingo suggested that we review the proxy statements, I started to search. Then, a friend told me about this website, which is a Gold Mine for info on companies: http://www.sec.gov/
I found AMRI's proxy statements (Schedule 14A) and saw the compensation senior management is receiving at a time when AMRI has taken numerous write-downs and the stock price has been abysmal.
For example, since joining AMRI until the end of 2010, the current CFO generated roughly -$190 million in Shareholder Value. That's NEGATIVE $190 million. Negative!!! As of yesterday, it was roughly -$230 million. Actually, I'm being nice. He presided over the destruction of $190 million in shareholder value. His total 2009 compensation was $504,346 (below). Why is he receiving a generous salary, raises and compensation awards? Why did he receive a promotion in 2009? Is this reward for losing money and driving the stock price down? What would GG say?
As for the CEO, given the poor financial performance and anemic stock price of AMRI, he should either slash his salary to zero or divert Allegra royalty compensation to ARMI. donkeyheaded mentioned this in an earlier post - the latter seems like a very unusual arrangement. After all, he still has his stock holdings.
AMRI SCHEDULE 14A, May 5, 2010, Page 19 AMRI SCHEDULE 14A, May 7, 2009, Page 19
Total 2009 $504,346 2008 $639,985 2007 $563,125 2006 $512,894
- - - - - - - - - - -
Thomas D'Ambra, Ph.D Chairman, President & CEO
"AMRI maintains a Technology Development Incentive Plan. Dr. D'Ambra, named as the inventor in our key Allegra patents, is eligible for payments of 10% of the royalties received from Sanofi Aventis under the terms of the Technology Development Incentive Plan."
The SEC filings do not include the decrease in Shareholder Value. I calculated the decrease in Shareholder Value/Market Capitalization by taking the amount of the stock price plunge between the two dates and multiplying by the number of shares outstanding.
I am surprised that this post received not one single response. mmm
On a related note, here is some additional info from Yahoo!:
Recent Events DATE --------------- EVENT 15-Mar-11 ---------- Price hit new 52-week low ($4.09) 14-Mar-11 ---------- Price hit new 52-week low ($4.24) 25-Feb-11 ---------- Price hit new 52-week low ($4.26)