RE:That Jan D'alvise is quite the managerShe is paid half a million per year + 1.3M stock options to manage a +-20 employee company from her home in Dan Diego. And some supposedly 'top-compensation firm' still believe she is paid much less than what she should be paid.
Let's just think about it for 2 minutes... 500K/yr.... working remotely from your basement... Plus the stock options...
''In terms of management and board compensation, the board, completely independent of management, brought in one of the top compensation firms in the life science industry, and they assembled a peer group compensation data set for benchmarking purposes. That analysis showed that our management and the board are well below market in terms of cash compensation and stock options held.''
Ok so basically the BOARD hires an 'independant' firm to do the assessment of management comp AND the assessment of the BOARD comp....Do you think that if the 'independant' firm gives them numbers that seem too reasonably low (especially for the board), they will be re-hired for the next year?
Board wants more comp for them and management (since changing management is a pain in the a** for any board), pays big bucks to a firm to get independant report. Firm wants big bucks every year from the company, gives highest numbers possible to keep them happy. Rinse and repeat.
I would pay 100$ so see the whole comp report with the peer comparisons they've chosen, and the performance scorecard they gave to each of the management team.
Hint: Not sure there are that many peers being CEO working from home, managing an about 20 employees company, with a total phase 3 failure due to bad protocol/execution. I wonder where they actually found the comparisons. I will also make no commentary on that Groch guy on the payroll, paid 300K+ per year plus stock options. Just see for yourselves:
Groch job description: sign commercial deals.
Groch deals signed so far: 0.
Groch paycheck so far: About 700K in cash + over 1M stock options