realizing value?This popped up on a stock screen because of the huge discount to NAV, so I started doing some cursory DD. The value here is obvious but how do you folks get comfortable with the huge red flags?
This is clearly an example of a company trading publicly for the sole purpose of benefitting insiders. The CEO and VP get $120k and $60k per year, respectively. For what? Passive management of a single stock holding? Insane when Spackman is also compensated for his other executive positions with related companies. I see from the circular that he additionally gets 15% of any profit arising from a liquidity event, which is pure crazy on top of the $120k per year compensation.
Then I satrted looking at the VP Pannai's other public co affiliations. Not exactly a paragon of corporate success. President and CEO of TriNorth/Centiva/Aylen, which are just iterations of the same company (after one fails it is folded into the next). The other officers of Aylen are familiar names: Alex Falconer and Jennifer Cho as CFO/Controller (same as SQG). In fact, Aylen is essentially Pannai's version of SQG. The insiders get paid a very healthy salary to sit on a portfolio of (bad) investments.
I'm not saying these guys are criminals, but they're clearly playing on the shady side of corporate governance. How are you folks getting comfortable with the risk that most/all value will simply be funneled to the insiders over time?