Mel Karmazin the CEO of SIRI radio went on Cramers show not once but twice screaming to buy the stock at five. Well it went to 5 cents cause he didn't refinance the company when he could. But Mel took care of Mel because the BOD gave him millions of stock options when the company was bailed out by John Malone. When the stock went to three Karmazin bailed out with 250 million. What about the shareholders that invested at 5 al those years? How can this be legal for a CEO to profit like he did. Was Jack Lief making boku bucks just staying on the property content with seeing the stock diluted as long as he got more stock options. I'm glad the board stepped up and fired him unless something else going on here.
It makes sense he didn't want to sell the company for ten dollars. Hell that;s not even a years salary for him. His stock options won't even cover that. Maybe he was thinking he could stick around for another three years while collecting his salary and getting free stock options.
raise money to continue operations while getting new shareholders under a buck who,ll be his new best friends. Meanwhile the board of directions will give Jack 5 million stock options for saving the company and when it goes to 10 in three years, Jack will retire rich. I don't know if this will be true, but Mel Karmazan did this to SIRIUS SAT radio.
Well, I use to own 200,000 shares of ARNA Made two million Paid the govt 3750,000 and Calif 100,000 and now I own 25,000 shares of ARNA. You see I made the same mistake I made with SIRI. I owned 170,000 shares bought under a buck. Sold at 9 something and bought back at 7 and after paying taxes lost it all. SIRI was at 9 bucks when they had 100,000 subscribers and when they have 18 million it was at 5 cents. ARNA hadn't even had the drug on the market and it went to 13.
He diluted shares to 5 cents. Probably got 99 percent of retail out cause at 5.cents a company is just about bankrupt. He got Liberty Media to bail him out with massive dilution but walked away with millions when the stock went to three again cause he got massive stock options. Loyal shareholders got nothing or are still underwater when Mel Karmazan went on Cramer's show to pound the table at five dollars a share to buy the stock two years earlier. SIRI stock has been stuck at 3.50 for years.