Delcath Systems Inc (DCTH)

[cvinvestor]

Here's a shareholder proposal for the next meeting:

We hereby propose that all paid administrators and staff salaries be frozen at this time until the share price rises over .50 PS. Furthermore, administrator and staff salaries shall be paid 50% in cash/check and 50% in common shares of Delcath. The number of shares given each pay period shall be fixed on the first pay period of the year with the number of shares being calculated based on the average closing price of Delcath in the prior year.


In this way, the PPS goes down, we all suffer together as their salary equivalent goes down during the year if the PPS goes down etc. They don't get extra shares as the price drops. On the other hand since they get fixed number of shares each pay period, their salary equivalent value goes up if the PPS goes up.

I bet we would see decisions made differently. As it is, they don't hold any stock in the company (very little) and so don't care about PPS. All they care about at this point in my opinion is getting $20M to get through 2018 and it doesn't matter how many shares they have to issue to get it. They will RS and keep ceiling at 1B shares so they can do it as much as they need. They aren't going to be able to do any deals for .02 or above at this point unless they RS. And the way they negotiate, if they give 50% of share price for $5M raise deal, they need to do it 4 more times.

Once the $20M is raised, I'll buy back in. Until then, PPS is no concern of theirs as their salary is not tied to performance in any way and they aren't investing in company shares themselves.