Equal was never so misused a word as when it applies to Klapko's crooked activities at Equal Energy.
What gall ECU's management and Board has to sue concerned and frustrated shareholders. The CEO has virtually raped the company (and the shareholders) with his outrageous compensation packages that have been rubber stamped by the equally over paid and incompetent Board. It should be noted that Klapko has been paid over $10 million in the last 3 years while driving the company into the ground. If the company wants to sue someone, why don't they sue him? His program seems to be convert as many of the company's assets as possible into cash and then pay out the proceeds to himself and his Board buddies as "compensation." Non of their pay is performance based which is probably why the stock is down 80% from when he (and the Board) took over.
The stock is not down because management is "hardworking but confused and incompetent" it is down because they has been "systematically stealing from shareholders". How else can one justify the huge cash compensation payouts while overseeing the destruction of the company.The proof is in the stock price -.in 2005 the stock was $25 and today it is $3.
And now ----- having paid all the profits and much more to himself ----- Klapko now wants to use what is left of the company assets to defend himself and his Board against his own shareholders - while he continues his program of corporate looting.
"Equal" was never so misused a word as it applies to Klapko's activities at Equal Energy.
Fixing the problem is easy, simply take away the cash compensation package from Klapko and the Board. They don't need the cash to live on after what they have already paid themselves. So do what so many successful companies have down ( Apple and Pixar) pay the CEO $1 in cash and the rest in stock. In this manner, management's payout (and the shareholders) will finally be properly aligned -focusing on the performance of the company and its stock.
Nothing could be simpler but don't hold your breath waiting for its implementation because it would end the "Klapko ripoff." Klapko will never stand for a performance based compensation plan because performance has never been his strong suit. It's just so much easier to just "take" the cash from the shareholders - and if you can sue them with their own money should they complaint, well so much the better !!!