The proxy group make some telling comments, based mostly upon objective facts that cannot be refuted by any spin, that I believe should be carefully considered by all shareholders in deciding how to vote in the upcoming election:
First, the compensation package paid to Cytodyn directors in 2021, such as Jordan Naydenov, is higher than that of the directors of Fortune 500 companies, such as Arthur Levinson, the Chairman of Apple's board of directors.
Second, the compensation package paid to Pourhassan is 2021 is nearly equal to, and in many cases in excess of, that paid to the CEO's of companies such as Weyerhauser and Paccar that have sales of $7.5 billion, and $18.72 billion, respectively.
Third, the judge in Delaware, in response to a lawsuit of former directors, settled by Cytodyn's Special Litigation Committee (SLC), stated, with respect to the stock the board of directors "awarded themselves, " that "fairness to Cytodyn and its shareholders was not even a consideration in these transactions, much less an objective."
It appears that the independent board members, who were on the SLC that agreed to the Delaware settlement in which Pourhassan was required to give back much of the stock the board "awarded themselves," are no longer on the board. Many other directors who did not agree with Pourhassan over the years are similarly no longer board members.
Fourth, Ziff IB offered to invest $25 to $50 million in the company, mostly to support its oncology indications, with the only qualification being that Pourhassan be replaced as CEO, and transition into a new position, with "equal money." Pourhassan refused, and proceeded to orchestrate a series of toxic (and highly dilutive) loans from Fife.
Lest anyone think I have some ulterior motive in criticizing Pourhasan and the current board, please note that my interest is 100% aligned with the company, as I have been a substantial shareholder for more than seven years, having participated in numerous Paulson raises. My only interest is in having Leronlimab approved for many indications, and for the company to succeed.
After observing what Pourhassan has said and done over the past seven years, I am convinced the company will fare much better under new management, and with a truly independent board.
LM
AI
