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SAVİENT PHARM AŞ Message Board

  • overcreek1 overcreek1 Sep 26, 2012 8:24 PM Flag

    CFO options at 2.92 is a great thing.

    I've recieved options at a few different companies. Depending on the position, you will either get shares at the price per closing on your hire date, or you'll get discounted shares that vest over time. Typically when you get discounted shares, the board has decided that the current pps is too high and there's not much upside in options. That would effect overall compensation. When you get to a certain level in your career, it's all about equity. 2 or 3 hundred k ain't enough to bring in a rockstar. That said, the fact his shares vest at 2.92 tells me all I need to know.

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    • Calling all: overcreek / aliefcpa / tehawz,

      Just reread yesterday's full news release "Savient Reports Inducement Grant Under NASDAQ Listing Rule 5635(c)(4)". (I've copied n pasted this below) I'd like to start a little more detailed discussion of how this new CFO deal can impact SVNT's shr price, short term, medium and long term. Put it in context, this Tues I bought 17K shrs SVNT at $2.82 shr but my total avg cost basis (includes prior pos) is $4.64 shr. The CFOs exercise shr price is $2.92, but then theres multiple variables and conditions which the avg layperson has no experience to understand; Options Vs stock, performance related, annual time release or holding periods, buyout clause, termination for cause, etc. This new CFO obviously was brought in something to do with a buyout/partnership and probably sooner rather than later.

      Using my scenario/context above, anyone care to guess how the new CFOs terms can impact the shrs I just bought at $2.82 shr and/or my total $4.64 shr total cost basis in SVNT?

      ****************************************************************************************************************

      "BRIDGEWATER, N.J., Sept. 26, 2012 /PRNewswire/ -- Savient Pharmaceuticals, Inc. (SVNT) today announced that it has granted time-based restricted shares, and time-based and performance-based options to purchase shares of common stock to John P. Hamill, the Company's newly appointed Senior Vice President & Chief Financial Officer. The grants were made pursuant to the NASDAQ inducement grant exception as components of Mr. Hamill's employment compensation. The inducement grants were approved by the Company's Board of Directors on September 22, 2012 and are being made as an inducement material to Mr. Hamill's acceptance of employment with the Company in accordance with NASDAQ Listing Rule 5635(c)(4). Savient previously announced that Mr. Hamill has been appointed Senior Vice President & Chief Financial Officer effective September 24, 2012.

      The time-based restricted share grant is for 100,000 shares of the Company's common stock which will vest and become exercisable as to 33,333 shares on September 24, 2013, as to an additional 33,333 shares on September 24, 2014 and as to 33,334 shares on September 24, 2015. In the event of the termination of Mr. Hamill's employment by the Company without cause or by Mr. Hamill for good reason, a pro-ratable portion of the restricted share grant calculated through the effective date of termination shall accelerate and immediately vest and the remaining unvested portion of the time-based restricted share grant will immediately terminate.

      The time-based stock option is for the purchase of 250,000 shares of the Company's common stock with an exercise price equal to the closing price of the Company's common stock on September 24, 2012. The option has a ten-year term and will vest and become exercisable as to 83,333 shares on September 24, 2013, as to an additional 83,333 shares on September 24, 2014 and as to 83,334 shares on September 24, 2015. In the event of the termination of Mr. Hamill's employment by the Company without cause or by Mr. Hamill for good reason, the unvested portion of the time-based stock option will immediately terminate and cease to be exercisable.

      The performance-based stock option is for the purchase of 150,000 shares of the Company's common stock with an exercise price equal to the closing price of the Company's common stock on September 24, 2012. The option has a ten-year term and will vest and become exercisable upon the satisfaction of the performance conditions agreed upon by Mr. Hamill and the Company's Board of Directors. In the event of the termination of Mr. Hamill's employment by the Company without "cause" (as such term is defined in the employment agreement between the Company and Mr. Hamill) or by Mr. Hamill for "good reason" (as such term is defined in the employment agreement), the performance-based stock option will immediately terminate and cease to be exercisable. In the event that any performance condition is not met by the specified date for achieving such performance condition (if any), the portion of such stock option subject to such performance condition will immediately terminate and cease to be exercisable.

      The unvested portions of the time-based restricted share grant and time-based stock option are subject to acceleration and full vesting immediately prior to the date of a change in control (as such term is defined in the employment agreement), provided, however, that the performance based stock option will only accelerate and become fully vested if, on or after the date of the announcement of a transaction which leads to a "change of control" (as such term is defined in the employment agreement) of the Company and up to 12 months following the date of the change in control, Mr. Hamill is terminated without cause or terminates his employment for good reason."

      Sentiment: Hold

      • 2 Replies to kg2931
      • Well, one thing that strikes me is that the options vest out to 2015, which says to me that at least there is a plan going forward and that the new CFO believes it to be viable - otherwise he'd have insisted on a more aggressive vesting schedule. And obviously the valuation of the perfomance-based compensation is more to Mr. Hamill's advantage if the stock value increases over the $2.92 pps, which should be good for longs. Certainly no real negatives here that I can see.

        The question I suppose is, what approach will they take? To date they (Savient) have not been on top of the information channels needed to motivate new investment. Frankly, I've seen better information flow from some of the posters on this board than I have from the analysts out there. We've had a 400% run since August and I've seen maybe three positive articles on Seeking Alpha, one or two on Motley Fool, and one new Morningstar analyst report. There's a ton of speculation, with little new data to support it. Just sayin'...

        Sentiment: Buy

      • Still waiting for a discussion on this above. Logging off now. Will return to this post later tonight .

    • You missed the biggest giveaway in the release: all of his options vest immediately if there is a "change of control as outlined in the employment agreement."

      I dont think you need much further confirmation that this guy is coming in to help sell the company.

      Sentiment: Strong Buy

 
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