It outwardly appears that Henri Termeer has done a fine job this past year, and thus, is well deserving of his bonus. My question pertains as to why he would receive primarily GENZ stock primarily as opposed GZMO stock. GZMO didn't even really outweight the bonus options granted in GZBX... I have owned GZMO and GENZ for over a year now, and have become more and more concerned with the working business relationship between these two entities. I have very little desire to sell my stock in GZMO, for me GZMO is as much a humane investment as it is a financial investment. Still, any clarification on the business practices at work here would be greatly appreciated. Who's responsible for the interests of the shareholders of GZMO? Is it the board of directors for GENZ?
There is no board of directors for genz. There is a board and ceo for the whole corporation and that includes the general division, gzmo and biosurgery. Genz shareholders control about 82% of the corporation as a whole with gzmo and gzbx shareholders controlling the rest. The board of directors and mr termeer ARE responsible for gzmo and have the same fiduciary duty towards all shareholders but let's be honest with almost no revenue gzmo isn't prioroity #1.
Also what irritates me about this stock is that neither King Henry nor Gail Mederis have lately made a symbolic gesture to buy any GZMO shares at these low prices. One wonders with the high salaries they make why are they not making a such a gesture and buy a few shares at these low market prices.
This is a message to Henry and Gail. Can't you afford $4000 to buy a 1000 shares of this company at these low prices to show you have confidence in your company. (I realize you have stock options to exercise. But we are talking about your expression of confidence in your company!!!). Apparently all of Gail's erudite research presentations at scientific groups are not doing anything for the share prices.
Better yet, Since the company has $2 cash per share, Why not auction off the company's assets. I am sure it could bring in more than $2. Of course King Henry does not worry about that because no company tries to take over a tracking stock.
Yep. Unfortunately stock analysts are not interested in tracking stocks and therefore there is nobody to publicize this company. (Only one analyst follows this stock.) Henry Termeer of the parent company could care less about GZMO. All he is interested in is to use GZMO's losses to reduce Genzyme's taxes and thus increase its profitability. The relationship is both a curse and a blessing. A curse because the market does not follow and/or value a tracking stock for its full potential. On the other hand it is a blessing because it can rely on the parent company for financing rather than turning to the market to raise money at these low prices. Hopefully in the long run, GZMO can produce a product to prove that it can stand on its own feet. So far all we have heard from Gail Mederis is a lot of noise. Hopefully one of these days she can produce a viable product. This stock is for long term patient investors who can wait for a while until it can produce a viable product and thus be recognized on its own merits rather than a step child of Genzyme.