After listening to a replay of the CC of 10-24-2001, I took another look at what guidances were offered by management earlier this year, and what SJ and his merry men will do for Q4. It certainly does not look great.
Just an observation here. As of the close of this week, both the Dow and the NASDAQ have regained all of their declines since the 9/11 terrorist attacks, and then some. CLRS on the other hand started the week of 9/17/01 at about 6.50 as I recall. And look at where we are now.
This brings me to my main point. I had another look at the proxy statement from earlier this year, and what did I see; that SJ and his merry men paid themselves " bonuses " amounting to over $ 900,000 for five executives. Granted Gagne who got $ 398,500 is no longer there, but he has been replaced by Jim McDewitt.
Given their performance so far this year, and the poor expectation on management's part for Q4, it would seem to me that there should not be any bonuses paid to anyone in Clarus.
Then the question for this board is as follows: Are there other shareholders other than myself who want to commence an action to direct the BOD so that bonuses will not be paid this year. It has clearly been a bad year so far for the share holders and over 200 former employees of Clarus.
If we submit a share holder resolution for next year's share holder meeting in May of 2002, it will be too late.
The amazing thing about last year's exec bonuses is how they were justified at all. In 2000, they lost about 95% of the shareholder value, they hired an ineffective COO (Gagne) whom they paid about $1MM (signing bonus + salary + separation) and let go after one year , they hired a VP of Sales and let him go after a week, they missed revenue projections, sales declined, etc, etc, etc - and they still paid themselves nearly a million dollars in bonuses! I wonder what they would have given themselves if 2000 had been a good year for Clarus?
Fundamentally I agree with you, but as a matter of practicality getting last year's bonuses reimbursed is nearly impossible.
What we can, however, do now is to petition the BOD to put an end to this " bonus " non-sense until there is a performance commensurate with issuing bonuses, period. You are very right in that this money is the share holders' money.
Declining revenues, along with decreased guidances on future revenues does not fit my definition of deserving a bonus.