Don't worry....companies have 2 days to file SEC Form 4...so, Musclepharm didn't do anything wrong.
The reason why it was done now was probably what I mentioned earlier:to reduce risk and to discipline Brad.
Brad did something that many executives do in many other companies, but that looks bad when there is a margin call.
Was this all against the interests of shareholders? Not entirely...it is somewhat argued by some that pledging of executives' stock is aligned with shareholders' interests.
I mean, it saves us some dilution and it gives the executive an incentive to work hard for higher stock price....as market cap appreciation doesn't do much to make 100,000 shares worth more.
Is the proxy's democratic employee stock purchase plan consistent with that? You tell me...I don't see that was gonna give Brad, Wynnefield or any of us any higher stock price in the short term.
It might be a good plan for the longer term, who knows, but for the stocks he pledged it seemed like a suicide indeed to start being the democratic boss, that wants to sell shares at a discount to employees that for the most part aren't interested in such a plan....but that typically look for 401k contribution matching, bonus, job security etc.
Brad needs a reality check....his interest is not to be the chairman of the board when the SEC and Wynnefield Capital recommends him to step down.
And, you can be as democratic as much you want to....but selling stocks at a discount to lower ranking employees, when you need a higher stock price....not so smart....unless you informed the market of stellar results Q1 results in advance.
