Replies to post #22573 on Muscle Pharm Corp (fka MSLPQ)

[Mike418]

A very good thing for stockholders is the change in compensation from revenue growth to "based on performance, long term incentives and aligns with growth of margins and net income". Net income not sales.
This puts the pressure on management to make profits which means watching all costs while doing what they seem to do best is selling. IMO

[dakotaben]

Yeah.... but you must have missed the timeline in which those shares were issued.

First, they issued themselves super secret shares to give them control of the company no matter what.

Then, almost all the way through the year, they implemented this ridiculous bonus plan giving away 1/3 of the company using said super secret shares.

Legal? Perhaps. Would a shareholder claim survive civil litigation? Perhaps. I will give them credit where credit is due, but will also call out what I see as BS. The manner in which the the share structure was set up was very NOT shareholder friendly. It seemed deceptive and shady to me.

Until my shares are worth more than a tootsie roll, these guys, IMO, have not made MSLP yet. Still a work in progress. Some great and some terrible. The bonus thing was terrible IMO.

[Hamham1]

Are you serious?

1. Multiply the bonus by three since Cory and Jeremy received it as well.

2. Not a bad deal for Jeremy since he didn't even work there for half of the year.

3. Gross margins are 35%. So sales go up $17 million but the net was only $5.95 million. From there they gave themselves $4.98 million in bonuses. That leaves less than a million for EVERYTHING else.

4. The company lost $23 million dollars.

It is impossible to justify the bonus.