I recently looked at Tigerlogic’s financial results for the time period when Carlton Baab was CEO and my conclusion is that Carlton Baab is an incompetent CEO. When Carlton started as CEO the stock price was $3.41 per share. When he left 7.5 years later (on February 26, 2009) the stock price was below $2.00 per share. This is a 41% decline in shareholder value for the 7.5 years of effort. This constitutes over $20 million of value destruction engineered by Mr. Baab.
Further, during this 7.5 year tenure, TIGR’s core Pick business cranked out cash which was consumed by seemingly inept expenditures directed by Mr. Baab. By my calculations, over $40 million was spent in sales and marketing and nearly $60 million was spent on Research and Development during Carlton’s tenure. The Pick business does not require much R&D or sales & marketing, so I have to conservatively conclude that over $80 million was squandered by Carlton Baab on unproductive and failed ventures.
I am not sure what Carton’s future hold, but I would be appalled if another company ever hired him as a CEO. CEOs are supposed to allocate capital to profitable ventures, thus generating value and a higher share price. It is my view that Carlton Baab is a failure and should never again have the opportunity to lose investors’ capital. To add insult to injury, Carlton Baab was paid millions of dollars for his efforts. Given that Carlton Baab squandered $80 million of shareholder’s money without anything to show for it, it is my view that Carlton Baab is an incompetent CEO.
Incompetant, yes. It was so obvious to all that ever had anything to do with that lout, all except the morons that hired him, praised with empty words and lavish compensation - all the while keeping him in the position to systemically dismantle the core compentancy of that poor company. 100% of the wasted money came from the D3 customer base (0% from the projects that Baab invested in) ... and in return the customers were spurned and lavished with an arrogance that only Baab could deliver. It was a really, really bad deal for the customers.
I was told by Soheil Raissi (complementary incompetent VP of engineering) during my interview that, unfortunately, D3 wouldn't die. The D3 developers were asked to give up their 401(k) matching to fund Tigerlogic, and then the Tigerlogic team was given preferential treatment - free snacks and beverages - in the same building! Believe me, that produced a lot of resentment on the part of the D3 developers. What a complete and total disaster Carlton was!