Muscle Pharm Corporation (MSLPQ)

[TheExpertHimself]

1% dilution of established companies' stocks is considered acceptable by institutional investors....and it's a rule of thumb that a young company cannot dilute the stocks more than 10% in any given year.

Musclepharm diluted it's stock with 20% this year because it thought it could justify it with rapid growth.

Rapid growth was from 4th quarter 2013 to 1st quarter 2014...After this it flattened out.

So, I would say....good luck trying to announce another equity compensation plan next year....in particular if you need to raise some capital.

I mean, raising capital at $4 cannot be in Brad's interest to get a few hundred thousand more stocks...Don't forget that he cannot get stocks all alone, he has to give stocks to others...so if he is adding to 1,3 million shares each percentage dilution will cost him more than 13,000 shares....so, perhaps it's worth adding another $1,5 million to bonus from raised capital.

If Brad prefers equity compensation plans over financial stability...then, he is really a basket case of a ceo.