Raj should vacate CEO and Chairman. Shareholders should ask for a stronger comp. committee.
Raj and the Mgmt are looting the Co. and shareholders blind. $25M in total comp. for a Co. with 200M in revenue is preposterous. They think SPPI is their personal ATM. Look at the insider selling and the shareholders keep voting in favor of the mgmt. Shoot these guys down in proxy and fire the mgmt. Vote NO on everything the Mgmt asks for.
If what you stated here are basically the reality, it looks like proper actions need to be taken by retail investors to protect their investments. It is justifiable for investors to take risks of the market, and we understand in the biotech industry, the risks of new products are higher than in many other industries. But, is the portion of CEO’s taking justifiable to those of the investors in 2012? If many of us believe it is not, do you guys have any idea on the options we have to prevent it from happening again? Additionally, in general, what can we do to ensure that decisions made on the board are in the best interest of all shareholders?
Could the action be to sell your "shares" and never look back ?
Without Rajesh Shrotriya there would be no Spectrum Pharmaceuticals success story. He has been devoted to medical industry for a long time. You can compare your own achievements to Dr Rajesh Shrotriyas - I find a healthy humble place within myself every time I do.
2009 October PPS was around 4.5$
2010 October PPS was around 4.5$
As I have understood we small retail investors get depressed EVERY DAY when our shares are not UP. So if you could have invest your savings at 2009 October somewhere else and then magically return your investment to Spectrum at 2010 October - nice move. For me it would have been impossible. So maybe the high short position will be maintained during 2013 - you never know - but financially Spectrum Pharmaceuticals is strong that ever. Thanks Raj.
Raj's compensation is definitely expensive if you look at it from year to year basis. Raj basically was 20% of SG&A. However keep in mind he is pseudo-founder of this business. If 2012 was one-off in terms of Raj compensation I take it. Otherwise I completely agree with you, Raj's compensation is excessive.
I also don't like his frequent utterances "we will give some portion of value back to shareholders". What the heck does that mean ?? You build shareholder value by increasing earnings and thereby increasing valuation. Nobody in biotech invests for dividend
While I believe Raj's business acumen is great, part of the reason why SPPI trades at such low valuations as well as high short interest, is ALSO BECAUSE OF RAJ.
The only way things can change is strengthening the board. Right now board is a bunch of Raj's friends. I don't think any significant shareholder is in the board.