>Even at $2 Cox would only make about $280k on the options before taxes. Only about 6 months average compensation. Maybe he'd get more excited about what a buyout would do for the 1MM or so shares he owns outright.<
It’s the totality of the buyout-compensation package that interests me. The package consists of the options (with accelerated vesting), a full year’s salary, and all bonuses that would have been granted for the fiscal year had the buyout not occurred. Add all this to the gain on the actual shares held by each officer and it’s not a trivial amount.
>But my guess is he'd just as soon stay at the trough, feeding on his tasty $600k+ annual compensation.<
Naturally, but he may not have that option. GTC’s 11-member BoD consists of:
• Four old-timers from the Genzyme Transgenics days
• Five newer directors who presumably have no emotional attachment to the company’s legacy
• Dr. Cox
• Christian Béchon (the LFB designate)
Béchon plus the five newer directors constitutes a majority, and Béchon is entitled to a vote unless LFB itself is a principal in the transaction in question.
If there were no buyout under discussion, one would think that Dr. Cox would be worried about losing his job. Yet Cox sounded more confident and relaxed on yesterday’s CC than at any time I can remember.
“The efficient-market hypothesis may be
the foremost piece of B.S. ever promulgated
in any area of human knowledge!”
