The OneVoice CEO comparison:
"....that comes into dramatic focus quickly. Aside from those difference which may or may not turn out to be all that important, what catches my eye are the officers of the two companies. Despite having a cash salary of only $575K, NUAN's CEO (Ricci) has managed to maintain an equal or slightly higher percentage of ownership in his company than Dean Weber. Highly significant when you consider that on a cash salary not even two times more than Weber's, he did so without virtual control of the BOD and with shares priced 1700 times more than One Voice's. That shows tremendous dedication and belief in your products and the future of your business to have $68 million dollars worth of your assets (118 times one year's cash salary) locked up in your company as opposed to around $134K invested (less than 1/2 of a single year's salary).
Very interesting analysis and conclusion.
However, you selectively extracted and compared cash salary in the apples to oranges comparision, and not the usual "compensation", which would multiply the Ricci factor by over two plus.
Be that as it may, even with granting you the wide lattitude of poetic license, your numbers are wrong, and therefore your conclusion of the comparison.
As of the begining of last month Ricci owned a little over 1.2 million shares, about .59% of the float. Most of his holdings were given to him as options, and he is not hanging on to them either. In the past twelve months Mr Ricci has unloaded $15,000,000 of NUAN stock. Maybe he is smart, the current EPS is -0.15, and the Return on Equity is -3.29%
So while your analysis of Mr Ricci's holdings have led you to state: "That shows tremendous dedication and belief in your products and the future of your business"
The reality is, that no absolute conclusion can be made from looking at a single issue such as that, without context. Clearly in Weber's case, he had no choice in order to keep the company running and developing new products and markets. In Ricci's case, he cleary is converting his equity and cashing out at a rapid pace. The only assests he is locking up, are the ones that have not vested yet, or are waiting to be exercised.
AI
