In general most of us are assuming that the destruction of the EPCT shareholder value is primarily caused by the technical incompetence and the incredible failures of this mgmt. Consequently we look for reasonable and technically explanations, However, as repeatedly said in the past, in this co there is another basic cause. A previous message of jonaustin14 tells the whole story " Therein lies the problem, folks. You have in EPCT a self-interested management that has no record of achievement other than to issue new shares for their own personal enrichment."
This mgmt has defended its excessive and diluting cheap share sales with a permanent lack of funds for its product development. However, at the same time it shifted significant amounts of these proceeds into their own pockets and raided that money for further increases of their inadequately high salaries, incentives, benefits, bonuses, stock awards, option awards and so forth.
Again: This shareholder money transferred by the mgmt into their own pockets has been urgently needed for product development!
Now this mgmt announced for the shareholder meeting of June 2/09 to continue with further excessive shareholder dilution, again combined with further excessive "management incentives". http://epct.client.shareholder.com/secfiling.cfm?filingID=1362310-09-4884 . See there what these employees do with our money (s. "tables of content", section "information concerning management and board") Pages 15-19 deal with their "compensation", bonus payments, "stock awards" etc.
It should be underlined here that the driving force and original cause in this IMO fraudulent game is Savage's so-called compensation committee. It's the technical source of this money drain. In addition Savage himself already cashed in around 500,00 shares (see link above), granted by his own committee. Let's also not forget they also have granted around 700,000 gift shares to the board (a major part of it for $.24 ps!), and that Talley's current CEO cash compensation is around 500% ! higher than that of CEO's in similar comparable companies.
Therefore here again the message of jonaustin14 "You have in EPCT a self-interested management that has no record of achievement other than to issue new shares for their own personal enrichment."
What are practical consequences? This mgmt has ignored justified shareholder complaints. Also a "voting out" isn't anymore an effective route. For all I see we talk here about a systematic fraud and breach of fiduciary duties in a self-service manner. That however also means we have to talk here about the prosecution of criminal offences in order to stop this stockholder nightmare. Already a year ago I saw good reason to mention that US public prosecutors usually enforce comparable cases of inadequate mgmt self-enrichment as a criminal offence. The same is the case in Sweden. Thus I would now remind all stockholders that they can and IMO should use this route to save their money. That isn't only more effective than a costly litigation, it's also in the interest of a survival of this company as an ordinary business. IMO the stock will explode North, since with this self-service mgmt the company has no chance.
After this thread you can't continue writing a new posts without taken any legal action.
Otherwise your words are not worth anything.
Just barking dogs.
I feel sorry for Obama, what a low salary! No wonder he says he will do his next 100 days in 72 days! A CEO in Sweden payed as low as Talley? You may find some, but there are not many out there.
I like the incentive options from early -09. If you have had those options the agreement on Ceplene would have been in place already :-)
I saw a message to you all on the epiceptshareholders initiative.
Despite all my criticisms, I don't believe that the actions of these managers rise to the level of criminal illegality assuming that they have not materially misrepresented or falsified any information, which there is no evidence.
However, while not criminally illegal per se, their gross mismanagement, misleading statements, missed goals and opportunities combined with their outrageous compensation levels at the expense of shareholders does, in my opinion, constitute a breach of fiduciary duty, and at a minimum, gives the appearance of self dealing.
But having said that, we must recognize the EPCT situation in the larger context of the worldwide financial crisis. The root cause of this crisis is, in essence, corporate self dealing. Self dealing can cover a range of actions, but one slightly looser definition is poor governance that permits boards and executives to inordinately enrich themselves without regard to shareholder value.
That level of self-dealing has become part and parcel of corporate life and creed, where an elite few become obscenely wealthy playing with others money, and in the end, they have risked nothing and lose nothing, while ordinary shareholders must bear the losses.
I challenge anyone to name another profession in which a wholly unexceptional, uninspiring, minimally educated and experienced individual can make 2 million dollars a year without achieving anything and do it 100% legally.
Welcome to corporate America.
Let's talk about facts. A back-and-forth discussion on some pricipal considerations is nice in theory, but not helpful.
IMO its a matter of fact that this mgmt deceived stockholders. Amongst other things you’ll find a couple in the co's annual reports. Also Savage’s allegation he would have compared CEO and mgmt remuneration levels with “similar or comparable” companies is proven as a particular misrepresentation. As already outlined before, they have nothing deserving the name “corporate governance”. Bold self-service may sometimes exist, however has nothing to do with US or European principles of a common business, in particular not in that extent of EPCT.
IMO we deal here with criminal offences of fraud, breach of fiduciary duties etc. I’m reinforcing my recommendation to shareholders of defendig their rights on this official route. Time for an urgent change in the interest of this company.