Ayala Pharmaceuticals Inc (ADXS)

[Donjayouworry]

Retention Bonuses:
You only give them if you believe you are going to lose a Key Resource that you cannot move forward without (at least in the short term.) Losing Pettitte would set the company back 6 months at least as they search for a replacement, recruit and hire that person, and then on-board them. It would cost WAY MORE than the $100,000 given to keep Pettitte.

Why Might Advaxis think they could lose Pettitte, Bronson, and Lombardo?
1. Acquisition being discussed where the company loses control (likely means elimination of jobs for Lombardo and Bronson...not clear on Pettitte who could be retained by acquiring company but the uncertainty itself is why you give the retention bonus.
2. Company is being shut down, sell off assets to highest bidder, need the key leaders (CEO, Science, Finance) to wind things down. I gave retention bonuses once when I was shutting something down.
3. Worried Rat DOC will poach Advaxis people (hire old friends)...that's what he did starting with Mayes, then Board Members Sidransky, Bronson too and the IR lady prior to Noelle too.
4. Just so much UNCERTAINTY and the Board wanted to pre-empt a future potential nightmare of replacing one of these key people at a crunch time of winding down cash.