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Tuesday Morning Corporation Message Board

  • jackhag65 jackhag65 May 26, 2006 12:21 PM Flag

    Time for change

    It is time for the shareholders of Tuesday Morning to demand change. A $10,000 investment in Tuesday Morning made at the beginning of 2003 would be worth $9,351 today. A similar investment in the S&P 500 would be worth $14,472. And if you really just wanted exposure to smaller cap companies and put that same $10,000 into the Russell 2000, you would be holding an investment today valued at $18,939.

    But not everyone has done so badly. Ms. Kathleen Mason took home a $500,000 salary in 2003 plus a $225,000 bonus. In 2004 she took home a $550,000 salary and a $498,000 bonus. Unfortunately for her she had to live just on her $572,500 salary in 2005 because she didn�t get a bonus. As a shareholder I�m not sure when I got my last bonus from Tuesday Morning.

    You may ask yourself what Ms. Mason has done with all of her cash compensation which has totaled about $2,345,500 over the last 3 years. One thing is for sure, she hasn�t spent much if any acquiring shares in the company she runs. Some will say that is just not true, the most recent proxy shows that she holds 861,496 shares. It is important to remember that Ms. Mason has been given 2 large stock option grants. When she first started she was given options to purchase 750,000 shares at $10.00 per share. And then in 2003 she was granted options to purchase another 500,000 at $20.04. She has exercised and sold 250,000 shares from the first option grant realizing proceeds to her of about $5.3mm. It appears as if she owns only 33,000 shares outright with the rest being options.

    It seems like things have worked out pretty well for Ms. Mason. I wish shareholders could say the same thing. Maybe someone at Madison Dearborn will volunteer for the job, I�m sure we would get a lot more value for a reasonable cost. As a big shareholder they care about the stock price not how big their salary is and how many options they can grab.

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