rantI've just finished reading the annual report and one of the proposals (repricing options) for the AGM is my pet peeve, so I feel the need to rant. My wife has no interest in the markets and my dog will listen to me, but only if I occassionally throw a stick.
Mgmt is suggesting we reprice over a million options down to 90 cents; mostly from $1.30 - the rest at $1.10. I understand that when this was written, the stock was around a dollar. Existing options priced at 90 cents are having the term extended by a couple of years.
For me, this is the ultimate lack of their confidence in the company or a total disregard for shareholders.
I should say that SBB is one of my bigger holdings. I have participated in 3 PP's with them and have a lot of respect for Drost. I have had warrants expire and no effort was made to reprice them. I have had the argument with many who claim that repricing options and repricing warrants is like comparing apples to oranges. I don't see it that way. I think it is a statement about a mangement team if they are willing to make the effort to reprice something that is solely for their benefit. By the way, these are long-term options, not ones that are about to expire.
In principle, I don't agree in any way that options motivate employees to create a better company, but that's a rant for another time.
I will be voting against item 6. I have also decided to sell about half my holdings. Jim Sinclair has spoiled me in showing me ethical management. Do I believe there is upside here? Absolutely. Do I want to be part of a team that reprices options (which I see as self-serving at shareholders expense)? Nah.
Gotta go do something important. "Where's the stick?"