Multi, thanks. No you are not off base, and BTW, I'm not blaming Huff. I'm not blaming anyone. I am trying to have a sober review and discussion of the Management Stock Option Plan and it's consequences on business activities and share price past and future. And as a subtopic, is this legally allowed and is the company following all the disclosure rules of the SEC on it. As a sub-sub topic, is it really ethical?
You're spot on asking about the review committee for compensation, which met 2 times last year.
Here's one of their criteria..
"4. In approving or recommending the long-term incentive component of
compensation for the CEO and other executive officers, the Committee should
consider the Company's performance and relative stockholder return,"
If they met today, I wonder how that would stack up vs. Dec 2004?
Note, btw, that the BOD did NOT follow the back price feature in the Management Plan 2004 or the Director's Plan in 2004 (which gave them options at .585 cents) when they granted themselves share compensation for 2005. They priced them at market close on day of the grant Nov. 14, 2005 at 2.12 a share.
Tellingly interesting to me.
Also see my post on I-HUB referencing editorial in Miami Herald on executive stock options that appeared coincidentally on this very topic this morning.
M
Before dawn there is darkness.
