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There are many competent CEO's, with far more experience, street cred, and likeability, who are being paid less than Pourhassan.
Most take much of their compensation in the form of company stock.
We can do much better than Pourhassan.
Well put Tony.
BL, my general understanding is that corporate insiders can purchase stock on a plan whereby stock is purchased at regularly scheduled intervals. In addition, Pourhassan had the option to accept stock or stock options in lieu of his bloated salary.
Of all of the dozens of companies I have invested in, this is the only company where the CEO has neither purchased stock, nor accepted stock as part of his/her compensation package.
Note that other corporate insiders of CYDY have purchased stock, and they possess the same non-public information that Pourhassan has. Tony C, you may recall, made a huge investment in CYDY, along with members of his family.
At no time has Pourhassan ever taken the position that he is unable to purchase stock on the open market; rather, he simply chooses not to do so.
I find this, and Pourhassan's bloated salary, including his recent huge raise, while the company struggles to make ends meet, as highly offensive.
LM
There is no excuse for NP taking a huge salary, including a substantial (in my opinion unwarranted) salary increase, and investing none of it back into the company.
So say what you will about NP, he has taken huge sums of money from CYDY over the course of many years, while the company has been breathing fumes, and left the shareholders to foot the bill for his exorbitant salary without investing one dime of his own money along with us.
Maybe that doesn't bother some of you, but it should.
LM
NP talks the talk, but doesn't walk the walk.
Please, NP, buy some shares on the open market so we shareholders will know you are backing up your words with action, and not merely taking a huge paycheck year after year while the SP plummets.
LM
These paid paid-for interviews of Pourhassan are a waste of valuable resources.
Say you are thinking of investing in Cytodyn, either as an equity investor or BP, and you happen upon one of these paid interviews with Pourhassan.
Can you honestly say watching and listening to Pourhassan that you are inspired and confident in him as CEO such that you are willing to invest in his company?
Even though I follow CYDY closely, and believe in the science, I cannot help but think that the more Pourhassan speaks in public on behalf of the company the less likely it is that anyone watching and listening to him will want to invest.
If you don't believe me, ask a friend or relative who knows little or nothing about CYDY to watch a Pourahassan interview, and then ask what their impressions are of him, and if based on what they see and hear they would want to invest in his company.
It is difficult enough to succeed as a clinical state biotech company; it in exponentially more difficult to succeed when you do not have a seasoned and highly competent CEO leading the company.
LM
We need a better messenger to deliver the message.
Our present messenger clearly has no credibility or weight among investors or prospective buyers.
We need someone with gravitas and credibility to lead us to the next level.
LM
Per last CC, after combo approved, CYDY will apply for label expansion for mono.
As I understand it, and I well could be wrong, a label expansion takes far less time than a full-on trial; months, rather than years.
Perhaps someone with greater medical knowledge than me can address this.
LM
I'm all in ALL-IN, but why so many posts?
While I think the facts regarding MTNB speak for themselves, your posts include no facts, and constitute nothing more than factless cheerleading.
So while I agree with your conclusion that MTNB is undervalued, I don't think is is necessary or helpful to post endless emails that do not show why MTNB is such a great company, that I believe it is.
If you persist in robo-posting, I would respectfully suggest you bolster your optimistic projections with facts, of which there are many.
LM
Science great but CEO in over his head.
I believe in the science behind CYDY.
And I believe in Dr. Pestel.
However, I don't believe the company can reach its potential with Pourhassan as CEO.
Today's call was just one more example of Pourhassan's shortcomings.
Pourhassan evaded questions, distorted information, and spent much of the call praising his purported accomplishments.
Suggesting he had obtained $500 million of product, and then refusing to disclose the cost of this product when pressed by Saltz for this information, was just one example of how Pourhassan distorts information, and lacks credibility.
Does anyone still believe anything Pourhassan says regarding timelines, licensing deals, or most anything else he tells the shareholders?
I know I don't.
Perhaps the pharmaceutical companies Pourhassan is wooing don't believe him either, or don't want to partner with a company run by someone of his caliber.
Even Dr. Pestel seemed somewhat disinterested and disgusted today; maybe he too would like to be working with a competent CEO given how much he has at stake.
It is not just that Pourhassan is grossly overpaid at $1M per year, and it is not just that he has not invested any of this bounty in company stock, as almost all CEO's do; it is that he lacks the competence and demeanor to take this company to the next level.
So even if the board of directors wants to keep Pourhassan on the payroll, I urge the board to please bring in a seasoned professional CEO to run this company.
Until that happens, I fear Cytodyn will struggle to succeed, and will waste a truly terrific drug that would serve a great medical need.
LM
Anyone know the reason for the huge jump in SP today?
I am unable to be on the call, but have raised my concerns directly to Pourhassan.
I was not impressed with his responses then, and doubt his responses would be any better now.
Moreover, as you have noted, Pourhassan does not provide appropriate responses to questions that dare to challenge his acts or decisions; "ripping their head off" is how you put it.
While you may believe this to be the appropriate demeanor for the head of a publicly traded company, I respectfully disagree.
Let's all hope for good news tomorrow, and not more of Pourhassan's warmed over rah rah cheerleading.
LM
Agreed.
I believe our best hope for success is with a seasoned professional at the helm.
For those who say Pourhassan did much to get us to where we are, I say he was more than amply compensated for his efforts.
An almost 50% raise at this time, with nary one share of stock having been purchased, is abhorrent.
I am nonetheless hoping for the best, but know we could do much better with a competent CEO.
LM
You are entitled to your opinion, as am mine. I hope that you, and anyone who shares your opinion, are proven right. I similarly hope we get great news tomorrow rather than the warmed over rah rah speech we typically get from Pourhassan.
So you know, I have a very large stake in this company, and truly want it to succeed.
I would not be calling for Pourhassan's ouster, or at least some sanity in his compensation, if I did not believe this to be in the best interests of the company.
I think we can agree upon wanting the company to succeed even if we disagree about who can best lead the company to that goal.
LM
Marty, I completely agree with your criticism of Pourhassan. If Pourhassan were to be replaced with a competent CEO, I would be much more confident in the company's prospects.
LM
A good CEO does not "rip" shareholders who offer constructive criticism, or who ask pointed questions, "a new one," as you suggest Pourhassan would do if asked tough questions in tomorrow's conference call. Rather, he should be willing and able to offer a dignified response supported by facts.
I hope that if tough questions are asked tomorrow, our CEO can act like a professional CEO, and not like a buffoon.
LM
I hope you are right Misui.
However, in the past, Pourhassan has taken huge raises without purchasing any stock. not because this was warranted, but because he could.
I hope this time is different but cannot help but recall hoping things would be different many times before as I watched with disgust as Pourhassan got rich on the bloated salary he took.
LM
We definitely need a Bill Belichick type to take over for Pourhassan.
BL, I hope you are right in thinking Pourhassan would not be so bold as to give himself a huge raise without backing it up with news on non-dilutive financing.
However, Pourhassan has continually taken an undeservedly high salary while the company was breathing fumes, and had to go back to Paulson for dilutive financing time and again.
So I am not convinced this time will be different, although I hope it will be.
LM
You are right BD; the timing of this raise is horrific.
Nor do I believe a raise is warranted for a clinical stage biopharma company that is struggling to keep the lights on.
NP, especially, should take a good part of his compensation in stocks or warrants, which is what the CEO's of many clinical stage biopharmas do.
I will again will be perturbed if Pourhassan does not use any part of his huge salary to purchase even one share of stock.
LM
Murine model results will not move SP.
Neither will PR about "potential" deals.
In order for the SP to move from left to right, CYDY must announce either or both (1) positive results for the Phase III HIV mono trial, or the Phase II TNBC trial, and/or (2) an actual not a "potential" agreement which provides non-dilutive financing, and puts an end to the toxic Paulson financing.
Once Paulson investors (of which I am one, many times over) realize there will be no more $.50 + warrants raises, they will hold onto their existing shares knowing they cannot replace them with cheap shares plus warrants.
That will put an end to the Paulson cycle wherein investors buy and then sell shares at $.50, which has kept a $.50 cap on the SP.
I don't know when this will happen. But when it does then, and only then, will we get a positive movement in the SP.
LM
If PRO 140 is approved for combo HIV, and results of TNBC are promising, I would expect many oncologists to prescribe PRO 140 off label for TNBC.
Pourhassan's salary and benefit package is akin to what a top level CEO of a highly profitable company, with a long track record of success, could expect to receive.
I am not aware of any CEO in a fledgling clinical stage biopharma such as Cytodyn that has received anything close to the salary and compensation package Pourahassan has been taking for many years. Most such CEO's take a minimal salary, and receive most of their compensation in the form of options or warrants.
Pourhassan does not have the background or experience to justify the exorbitant salary he has been taking for many years even if the company was profitable. However, to continue to take an exoribitant salary, without purchasing one share of stock, and while the company continues to bleed money, is outrageous.
I have a big stake in Cytodyn, through numerous Paulson raises (without thereafter selling my stock and holding the warrants, most of which have now expired worthless), and truly want the company to succeed. However, as a significant shareholder, I deeply resent so much of my money being paid to a CEO who is clearly undeserving of being compensated so lavishly.
LM
When I am asked by a CEO to invest, the first question I ask is how much of your own money have you invested, and will be investing alongside your shareholders. If the answer is nothing, I generally pass on the investment based upon the simple premise that if the head of the company does not believe enough to invest his own money, something is amiss.
I violated this cardinal rule in the case of Cytodyn based upon what I believe to be its compelling science. However. I did so in spite of my concerns with the CEO who I believe to be underqualified,
overcompensated. and not committed enough to invest one cent of his own money in all the years he has been paid an exorbitant salary.
Pourhassan has invested none of his exorbitant salary in the company in the entire time he has been president. In addition to being grossly overpaid, this is highly unusual, as well as disconcerting.
BD: Please see my reply to bee.
I know of nothing that prevented Pourhassan from purchasing stock during his long tenure as president. If he was privy to an unannounced material event, good or bad, he would be required to wait until the event was publicly disclosed before buying stock.
I have invested in many clinical stage biopharma companies, and in almost every case, other than Cytodyn, insiders, including the president, purchased company stock, and took stock in lieu of a large salary.
The fact that Pourhassan has taken a very large salary for many years, and purchased no stock in the company, is both disappointing and disconcerting.
LM
I believe in the science and Pestell.
I would feel more comfortable with a CEO who had more experience, a more effective presentation style, and who invested even a small part of his bloated salary in the company.
I wish the best of luck to everyone who has a high percentage of their net worth invested in this company.
I have much invested in CYDY through five or more Paulson raises, and am rooting very hard for the company's success.
LM
If someone has a list of Paulson investments, and how they have fared, please post it.
Misiu,
Please keep posting as you are a great ambassador for the company.
LM
Misiu,
I truly admire your unwavering support for the company, and for the prospects for its eventual success.
I share your belief in the science, and think the company will become a success because of the science, and in spite of poor management.
Thus, I cannot share your unwavering loyalty for Pourhassan.
My criticism of Pourhassan is based on three factors:
First, he has repeatedly made statements about financing, timing of approvals, and other matters related to the company and PRO 140 that turned out to be false. Thus, he has no credibility.
Second, he has taken a huge salary for many years without investing even one dime of that back into the company. I am invested in many clinical stage biopharmaceutical companies, and know of few if any CEO's who take such a large salary (most take compensation in the form of a modest salary plus stock and/or warrants). Moreover, most such CEO"s buy company stock on the open market which sends a strong message to investors that management believes in the company. and has skin in the game.
Third, Pourhassan is dismissive of existing investors, and does not present well to prospective investors. This has nothing to do with Pourhassan's accent, and everything to do with the substance of what he says.
I enjoy your posts, and believe you contribute much to the board.
However I respectfully disagree with your blind loyalty to Pourhassan, and believe the company and its investors would be better served by a more competent and proficient CEO.
The Lawman
Re Misui call with Pourhassan:
Fool me once shame on you.
Fool me twice, shame on me.
I still can't help but wonder why Pourhassan has still not invested one dime of his huge salary back into the company.
The paranoid side of me thinks Pourhassan is keeping the company going, with dilutive raise after dilutive raise, based on false promise after false promise, only to keep the money rolling in for himself.
In such moments of concern, I calm myself by looking at the huge risk taken by Dr. Pestell, who, unlike Pourhassan, appears to be very competent, and a straight shooter.
Hopefully, the life bet made by Dr. Pestell prevails, and the company enjoys great success in the years to come.
Could not agree with you more TT!
TT: I hope you are right about PRO 140, but know you are right about needing a new CEO.
The NE Patriots win every year because they have a strong owner, a great coach, and, of course, the GOAT.
If Bill Belichick ran the Patriots the way Nader Pourhassan runs Cytodyn, the Patriots would be the NY Jets or Buffalo Bills.
A company is only as good as its CEO.
A company will succeed only if it has strong management.
I again implore the board to hire a competent CEO.
Only then, can we hope to succeed.
Bobby: I could not agree with you more.
Pourhassan must go.
BOD: Are you listening?
We need a new CEO, and we need a new CEO now.
If Resolute can raise $45M, there is no reason CYDY should not be able to do so.
After all, RZLT was at .11, and on the verge of bankruptcy, when it got big money from Korean institutions on terms that were much less dilutive than the bad deals made by Pourhassan for CYDY.
Good management is the key to success for most companies, and that is especially true of clinical stage biopharmas.
If CYDY had a competent CEO, the company would flourish, and the SP would soar.
It is bewildering that the BOD would not only keep Pourhassan on as CEO, but approve a salary befitting a CEO with a long and distinguished record of success.
We can do better, much better, than Nader Pourhassan.
BOD: Are you watching and listening?
LM
Pourhassan has socked away millions of dollars in salary while investing nothing in the company.
No one at this point can be expected to invest in this company when its grossly overpaid and clearly under qualified CEO takes a huge salary, year after year, while refusing to invest any of this money back into the company.
For what we, the shareholders, are paying Pourhassan, we could get a highly qualified seasoned professional, with experience in successfully managing a clinical stage biopharma, to take the helm.
Indeed, far more qualified CEO's are getting paid far less than the incompetent CEO who now runs this company.
It is time for a change at the top.
BOD are you listening?
LM