@sergfro: the real management compensation issue at VRNG is not that they're all selling more shares than they buy. Almost all insiders do that. It's the overly high management salaries for the current size of the company PLUS the shocking levels of dilution in the last trip to the trough (a total of 36% dilution for regular shareholders like you and me, when you include all the grants to management, board members & lawyers listed in the information sent out to shareholders prior to the annual meeting).
I voted against the compensation recommendation as did (encouragingly) a large number of shareholders representing almost 10% of shares outstanding), but of course the vast majority of shareholders didn't bother to read the disclosures and so didn't vote at all. The truth is that if management votes (for themselves!) are excluded the shareholders who did vote were clearly AGAINST the new compensation agreements. So at least the message has been sent.
The management team simply has no credibility when it comes to good governance & representing the interests of shareholders. Which really is a big problem for getting the kind of institutional buying VRNG needs to achieve its full potential. The shareholder lawsuit will hopefully help tamp down further management greed (lets be charitable & call it "fiduciary inexperience"). But the damage may already have been done as the street realizes that the "fully diluted" number of shares outstanding is no longer 86 million but well over 115 million due to the additional options the management just awarded themselves (because, I'm guessing, they didn't think that salary raises from $300,000 per year to $900,000 per year were enough to justify all their hard work).
The sad truth is that they're comfortable selling so much stock with such wild abandon because they're simultaneously issuing themselves with options for even more stock, so that their share of the company is still growing rapidly even as they take so much cash out of it. I fear that this will become a business school case study in bad governance. Our only hope as shareholders is that there is a huge settlement soon with GOOG and ZTE, thereby reducing the runway for further "improvements" to management comp.
However this kind of management behavior & the potential it creates for weakened VRNG credibility & momentum must be seriously encouraging GOOG & ZTE to string things out even longer in the hope that VRNG will run out of money.
At some point the patience of existing shareholders will snap & VRNG won't be able to raise any more money, period. I have no idea what that point will be, but I do know that if management compensation continues to balloon out of control it will be sooner rather than later. Would love to hear what other shareholders think can be done to get this under control.
