CTI chief gets bonus to buy stock
Last updated March 21, 2008 7:35 p.m. PT
By JOSEPH TARTAKOFF
P-I REPORTER
During his talk at the Invest Northwest conference Tuesday, Cell Therapeutics Chief Executive James Bianco mentioned that he thought Cell Therapeutics' stock, which has fallen dramatically over the past month, was "a very good buy opportunity."
Two days later, the compensation committee of the Seattle company's board of directors awarded Bianco a $91,938 "supplemental" bonus, giving him additional means to act on his own recommendation.
In giving him the cash, the committee included "a recommendation to Dr. Bianco that the payment be used to purchase shares of company stock in the market." The committee also said it had an "ongoing goal to encourage management to acquire and maintain increased levels of ownership of company stock."
Before the cash inducement, Bianco had already been on somewhat of a Cell Therapeutics stock-buying spree. On Tuesday and Wednesday, he spent roughly $97,000 investing in his company.
The committee said the reward was partly "in recognition of his efforts with respect to recent debt and capital restructuring and the recent MAA filing for Xyotax in Europe."
Since March 4, when cash-strapped Cell Therapeutics filed for European approval of its Xyotax cancer treatment and issued a substantial amount of new debt in order to shore up its finances, the company's stock has fallen 56 percent. It closed Thursday at 61 cents on the Nasdaq Stock Market.
Cell Therapeutics spokesman Dan Eramian said the company had outlined its reasons for giving Bianco the bonus in its filing with the Securities and Exchange Commission.
He said the committee also had voted to give bonuses to all employees, with the exception of senior management, although he did not give bonus amounts.
Cell Therapeutics has said in filings with the SEC that it will need additional capital in order to fund its operations this year.
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