The road to redemption:
I have given some thought to what the execs at Muscle Pharm could do to unlock some of the value that should have been available to long term investors for quite some time.
Here's a statement that I think I might issue if I were the CEO of Muscle Pharm, and I was seeking to unlock some value in the common shares.
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After careful consideration, I have determined that the following measures are necessary to begin to reward our long-term shareholders with a significantly higher share price.
-While some have called for my resignation as CEO, I will not be resigning (as I have more passion for this supplement company than I ever had for pro football). I do, however, now understand that the level of my financial enrichment has not been proportional to the success of Muscle Pharm (as measured by the the single most important metric, the stock price per share). As such, I will be surrendering all MSLP shares currently held by me. As replacement for those shares, I will be receiving long-term, deep-out-of-the-money call options/warrants on MSLP stock. This will ensure that my interests are fully aligned with those of the common shareholders, and that I can only benefit financially from a stock price significantly higher than where it trades today.
-At Muscle Pharm, we have been placing a tremendous emphasis on the level of sales, almost to the exclusion of all other measures. While sales growth is still important to us, we will now be primarily driven by profitability. And if that means dropping some of our frequent deep discounting (i.e. buy 2, get 1 free) at bb.com on products that we have fought to keep in the Top 50 best selling list, then so be it. We will no longer put the health of this company at jeopardy, simply to drive top line sales growth. We believe that we can now produce healthy, organic, sustainable sales growth via our international expansion.
-Going forward, for each deal or endorsement we have entered into, we will include (in the announcement) the ROI computations which brought us to the decision to enter into that deal or endorsement. This should greatly improve transparency on each deal/endorsement/acquisition, and reduce criticism (which we have received in the past) that we have entered into a deal to stroke our own egos. While we will be providing ROI info to justify the deal/transaction, we will take special care to not provide such data that would weaken any competitive advantage.
-We have implemented an across the board, cash salary pay cut of x percent. There will be no discussions of reinstating the prior level of salaries until the share price has improved by x percent. Furthermore, future salary increases and bonuses will be strictly tied to stock performance. We will be publishing a schedule by x date with specific figures, and will adhere to those figures.
For some time now, our goal has been to become the dominant supplement company around the globe, and the time has come for our financial enrichment to be more closely aligned with those that have invested their hard-earned money in supporting our dream, the common shareholders.
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As always, simply my opinion.
MSLP
*Muscle Pharm, the Athlete's Company (and now the Shareholder's Company as well)
