RE:RE:Are Regs not pasted and underway.mcvic1 wrote:
I'll tell you what's happening. We have a full order book going forward, but there is a lack of confidence in Bond be able to do the right thing for the shareholders and change the compensation packages. It's what's keeping the institutions from joining and his intransigeince is the major stumbling block. We had the same arrogance previously with carswell....these guys think THEY own the company and have set up options and comp packages to suit their own needs. We will never achieve our full potential as long as the top 3 guys are skimming 10% of the top....pre tax, and leaving the shareholders holding the bag. I'm sick and tired of penny stock charlatans thinklng they alone are responsible for the success of Kelso, and they alone deserve huge compensation. I give credit for them setting up the production plants and i applaud Gambow for al his hard work in selling to the industry. Actually .....i wish Neil was the one in the catbird seat. IMO either Bond addresses this fully and makes the changes at the AGM....or he should take his approx. 1.5m shares and retire. It's way past time to remember that your playing in the big boys arena...and it's time he acted that way!!
Mcvic1, I think you need to take a more objective look at the situation. Looking at the compensation structure, but neglecting the dollar amount relative to the median small executive compensation, yields an incomplete picture. If you look at the latter figure, you'll see management is actually being compensated fairly. The structure will no doubt have to be changed in the future otherwise the dollar amount would be far too high. It would be ideal to address it now to get it out of the way, but still a nonissue till 2016 IMO. I also think that the current structure incentivizes management to increase EPS - the sacred metric to investors - so it's not all that bad.
Secondly, I don't see why anyone would doubt the management team. Historically, they've done right by shareholders. The 5-year stock price movement is a clear reflection of that. The stock was trading at $0.10 back in 2010. That's practically a 40-fold over 5 years or ~2-fold increase annually. I'd say that's a hell of a good return, wouldn't you agree? Not to mention, dilution has been pretty minimal as there's only 45M shares outstanding. They've consistently delivered on their promises and have grown revenue extremely fast.
I'm glad to have Bond and Lee as the CEO and CFO. Don't agree with all their decisions such as not doing a share buyback, but I don't have to.