Per the 10Q: For every $1MM in sales over last year CEO and President #1 get a $10k bonus plus $100k in stock.
They have said they expect to do $20 MM in sales vs. $4 MM in 2010. So in addition to their salaries, both of them are going to get a $160k bonus AND $1.6MM in stock (86 million shares each).
Coach or anyone who understands these documents, am I reading this wrong?
Coach - the employment contracts were issued on 11/14 with the $1.6 mm in stock as a bonus. How smart do you think it was for them to issue a stock based bonus based on dollars versus number of shares. On 11/14 the two executives were going to get 86 million shares EACH based on the stock price. Now with the stock down to $.0091 they will get 176 million shares EACH! They will literally bonus themselves nearly half of the number of issued shares. We all know it's bs, but is it legal? Wouldn't an agency like the SEC have an issue with this?
At first I read the employment contract to mean a multiple of $100,000 in shares. I did research and believe this only means $100,000 (possibly less) in shares. First the Bonus Stock Plan limits the granting of shares to a maximum of 5 million shares per employee. The word AND is defined as joining to seperate clauses with The (i),(ii) in the bonus plan indicating two seperate business clauses. MSLP has moved from convertables to stock warrants to raise capital. Investors, in the last weeks, have accepted warrants with exercise options of 1.5 to 3 cents from MSLP. Jeremy DeLuca also receives this bonus. I can't see investors putting money in a company about to drop 500 Million shares on three men as a bonus.
One of the larger abuses of power I have seen. Understand that most public companies have Boards of Directors that control these types of decisions. The CEO and President #1 control less than 5% of the authorized shares (none of which were purchased since neither of them have put a single penny into the company) yet almost all of the voting shares. So they gave this to themselves at the expense of the shareholders who have been financing the whole deal.
Btw, I am not anti bonus. It is commendable that sales have grown substantially this year. But to pay yourself $4 million when the company is unprofitable, diluting the stock on a daily basis to pay their bills, still owes the IRS for back taxes, etc. is pure greed.
Coach - has your opinion changed on this issue after time to reflect? Looks like mgt could care less abbot the shareholders. I was hopeful that the new COO would be able to rein them in. Awarding yourselves 170 mm shares when you still owe the IRS $ and the loyal shareholders haven't made a penny is a level of greed that you rarely see. Unfortunately I bought a lot of shares early and have bought more to bring my average down to about $.14, but with these meatheads running the company I don't think the stock is ever going to see that again.
Throughout the years my Yanks have done a good job of cutting losses. I think it's time to take a page from their book.
I have concluded that this is a "Golden Parachute". I used BSN's past growth rate with conservative PPS vs. Sales and came to a reasonable guess of 100,000,000 million bonus shares each as of 04/10/2016. Should MSLP do $150,000,000 in 2015 sales and sell the company at $.25 PPS in 2016 then each pockets $25 Million in a 188 million sale using 750,000,000 as total shares. I am not predicting $150,000,000 in sales. I am only saying that in any future sale at whatever price this is a sweet deal. The OK news: These will be resticted shares and will not enter the floats. The bad news: Shareholders won't see fair value in any future buyout. They have done a great job on sales and I understand the spending on advertising but this deal is difficult to defend.
Not even close. You and Brad are taking almost 80% of gross margin. As a % Siri did nothing of the sort. Btw, are you saying that someone else screwed their fans and shareholders so why can't I?