compensation of CEO From a recent press release...
"With Board approval, the Company has entered into a new five year employment agreement with Mr. Skippen to serve as President and CEO of WiLAN. This agreement sets Mr. Skippen’s compensation for five years, which will generally consist of a base salary and other typical stock-based compensation. The five year agreement also calls for the elimination of Mr. Skippen’s contractual right to receive 2% of WiLAN’s gross revenues for a portion of 2011 and all subsequent years, in exchange for a one-time payment of $7.25 million. The Company expects to record this one-time expense in the fourth quarter ended December 31, 2011. Mr. Skippen has indicated that he will use a portion of the after-tax proceeds from this payment to purchase WiLAN shares. The new employment agreement also includes financial sanctions if Mr. Skippen voluntarily leaves the employ of WiLAN, or he does not maintain a minimum shareholding in WiLAN, during the first two years of the agreement.
The Compensation Committee of WiLAN’s Board of Directors retained compensation experts Towers Watson to review Mr. Skippen’s compensation package and to recommend approaches to eliminating the 2% component, which had no sunset provision.
The Company’s buyout of Mr. Skippen’s contracted right to 2% of gross revenues and the terms of the new employment contract were based on advice given to the Compensation Committee by Towers Watson, and were unanimously approved by all independent directors. Mr. Skippen did not take part in the meetings at which the buyout and employment contract were considered and approved, but did accept the buyout offer as proposed by the independent directors."
Am I the only person that thinks this is a complete joke?! What Board would approve of a 2% override(kind of like a GORR in oil and gas terms) of the company's revenues? They should all be fired for being incompetent and coming up with the 2% scheme to begin with. Skippen doesn't care...he's laughing all the way to the bank.
I hope the hedge fund punish this company by shorting its stock...