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Lotus Pharmaceuticals, Inc. Message Board

  • rhughes_lilikoi rhughes_lilikoi Feb 13, 2003 9:38 PM Flag

    Still digesting the annual report?

    Here's an item that's giving me indigestion.

    The addendum, p11, "Compensation and Benefits Philosophy and Strategy".

    "To demonstrate that the Compensation Committee and the Board of Directors (CC&B) were serious about paying for performance, in fiscal 2001, when the Company's performance did not meed Board expectations, the Compensation Committee and the Board gave no raises, no bonuses and awarded no stock options to executive management. Fiscal 2002, however, was a different story, as Garden Fresh increased its earnings per share from $0.42 to $0.96."

    Fiscal 2001, just for the record, was the company's worst year in its 9 years of existence of a public company. An increase from this level of performance is nothing to reward. Based on its early earnings' trajectory, the Company migbht now be expected to be earning $2 per share.

    Now go back two pages to p8 where it's noted that Mack was awarded 27,500 shares based on performance in fiscal 2001. Say what??? Was the bad performance of 2001 being rewarded or was it not?

    For the record, last year's addendum indicates that Mack was awarded 33,000 options in fiscal 2001 for performance in fiscal 2000.

    Contrary to what the CC&B says, Mack gets rewarded with a large number of options every year. Mack is inexorably taking this company private again.

    Again on p11,

    "Future raises, cash bonuses , and stock option grants, to the extent awarded, will be a function of the Company's performance against annual and longer term financial and operational objectives."

    This is sufficiently vague that you can expect Mack to be awarded approximately 30,000 options forever, no matter how the company is run. A true compensation plan would spell out *exactly* what performance goals have to be met.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • little stock?????????????

    • MUCH MONEY PER SHARE WOULD BE REASONABLE??????

    • "To demonstrate that the Compensation Committee and the Board of Directors (CC&B) were serious about paying for performance, in fiscal 2001, when the Company's performance did not meed Board expectations, the Compensation Committee and the Board gave no raises, no bonuses and awarded no stock options to executive management. Fiscal 2002, however, was a different story, as Garden Fresh increased its earnings per share from $0.42 to $0.96."

      Fiscal 2001, just for the record, was the company's worst year in its 9 years of existence of a public company. An increase from this level of performance is nothing to reward. Based on its early earnings' trajectory, the Company migbht now be expected to be earning $2 per share.

      ============================

      I disagree. What's the incentive for mgmt. to strive to be unrealistic goals? For next year, the bar has been raised, so there interests are aligned with shareholders. As or stock incentives, they suffer just the same as you suffer. A stock incentive would align there interests with you. It's common practice that employees actually get paid for there work they are performing for the employer. Some owners appreciate the work there staff, so please don't include this owner with your view. I'll be more than happy to buy you out at the right price if you are disgruntled with our compensation package.

      ======================



      Now go back two pages to p8 where it's noted that Mack was awarded 27,500 shares based on performance in fiscal 2001. Say what??? Was the bad performance of 2001 being rewarded or was it not?

      Could you quote in exact detail the language being used in it's full context?

      =====================

      For the record, last year's addendum indicates that Mack was awarded 33,000 options in fiscal 2001 for performance in fiscal 2000.

      Contrary to what the CC&B says, Mack gets rewarded with a large number of options every year. Mack is inexorably taking this company private again.


      Options? That's a far cry from stock. I thought you said stock, but now your saying options. Oh, well you see, options would be exercised at a price that would come out of Mack's pocket. So he wouldn't want to exercise them unless they are out of the money. So again, we have an alignment of interests. The higher the stock price, the greater Mack's compensation. That's the way I like my it.

      ========================

      Again on p11,

      "Future raises, cash bonuses , and stock option grants, to the extent awarded, will be a function of the Company's performance against annual and longer term financial and operational objectives."

      This is sufficiently vague that you can expect Mack to be awarded approximately 30,000 options forever, no matter how the company is run. A true compensation plan would spell out *exactly* what performance goals have to be met.

      Again, if you don't trust the BOD or the mgmt. of this company, there is no reason why you should be here. Who is the bigger fool? The fool he leads or the fool who follows? If you believe these are fools, then don't follow them. Go down another path. Just don't let the door slam you on your ass on the way out. ;)

    • You have my sincere sympathy. Restaurant company managers want to be " taken care" of in the same manner as technology company managers were taken care of a few years ago. In other words, they want to be paid a few billion dollars with no risk to their own finances and with no regards to their performance. Actually, it is almost all corporate managers. I think there is something in the Evian water that they drink. Now you know why people are departing the stock market and investing in their own homes. There is less liklihood that the manager of your own home will steal from you!

      • 1 Reply to pmlljl
      • I have a friend who's wife recently filed for divorce. She got to keep the kids, the dogs and the house. So much for the boss not kicking you out of your own house.

        Here, in America, CEO's are the equivalent to royalty and the biggest cheese of them all, GW Bush, is the ultimate usurper of authority. His stance on Iraq, handed down ex patris, a veritable family vendetta, looks likely to flout World opinion. At least the British public are planning a mass protest. Americans are patsies to authority.

        BTW I'm British, if you hadn't already guessed.

 
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