Share Option Plan-More Greed on DisplayFor those of you who have not taken the time to read through the Information Circular sent to investors recently it includes a proposal to increase the number of share options for "directors, officers, employees, management and others who provide services to the company or any subsidiary, to act in the best interests of the company."
The only persons not mentioned in that list are the shareholders who have provided the company with more than 27 million dollars, most of which was squandered unproductively by Leung over the past 14 years. The investors have provided 85% of the money to run this company but own roughly 20-30% of the outstanding shares. This number is steadily being eroded by Leung as he tries to grab additional compensation. When all shares, share options and Leung's convertible loan are added together the company has roughly 120 to 130 million shares outstanding. Every time Leung decides he needs more compensation for all the "good work" he's done over the past 14 years your percentage of ownership shrinks. How many times are you willing to roll over for this guy?
There are currently 7,800,000 share options available for these people and Leung is proposing this number be increased by 4,400,000 to 12,200,000.
In my view this is completely unwarranted and unjustified. These are the people who have made the decisions that have essentially bankrupted this company over and over. The companies history is littered with failed multi million dollar projects. We did our part by providing an enormous amount of cash but they want to reap most of the benefits in the event this company ever actually becomes successful and the stock price goes up.
Don't forget-these are the people who made the decisions that took this company from a 25 cent seed stock to a 35 cent IPO then mysteriously up to $2.35 and then as low as 2 1/2 cents. Its hard to imagine how any group could be more incompetent. They have far more than adequate compensation already. They do not need an additional 4.4 million shares.
Its also worth noting that Leung chose NOT to post this proposal on Stockwatch. instead he has included it in an Information Circular he knows most investors won't bother to read. If he has no shame in making this proposal then he should make it as open and widely known as possible.
Who decides how many share options eligible persons receive?
The compensation committee is comprised of Amy Chan and Edward Bagg. They decide the share compensation for the CEO, CFO and senior officers. In other words they decide how to divide the share options amoungst themselves. Amy Chan is the wife of Paul Leung. She decides how many shares her husband receives. There could not be a more clear cut example of a conflict of interest--but thats the way this company is run.
This resolution is to be voted on at the AGM on November 28. Investors can also vote online. It is a very simple process and only takes a few minutes.
I strongly urge you to vote no. Stand up to these people for a change. If you don't take the time to vote then you will in effect be voting. A non vote is a vote.
Sierra Wireless vs Empower:
Some of you have no doubt heard of Sierra Wireless. Perhaps you were lucky enough to have been a shareholder. If you were you probably did very well by them. Swir is also a Richmond, BC based company that developes software and hardware products. Their stock currently trades at over $18.00 and has been as high as $60. The company has only 30 million shares outstanding. SWIR did not require financing after financing and they do not have a long list of failed multi million dollar products. The CEO does not hide from investors or refuse to answer questions at the AGM by yelling to drown out questions.
When SWIR came into existance it was only a few years later that they became wildly successful with one great invention after another. This is a highly respected company with smart, experienced business people who know what they are doing. Who do we have? We have Paul "I need another million" Leung.
Need I say more?
One more note:
For those of you who participated in the recent 5 cent offering it looks like you made a mistake. You could have bought the stock recenly on the open market for 20 to 40% less. I am not trying to rub it in. I take no pleasure in seeing fellow shareholders lose money. But ask yourself-- who sold you the stock and what story did he tell you to convince you to buy it for a nickel? He duped you again.