Dear Mr. Henry,
Because my concerns are shared by many other shareholders, I intend to post your reply on Silicon Investor.
It has been brought to the thread's attention by myself and others on Raging Bull that last year in November, Mr. Gordon made himself a 5 million share grant. My question is has or will Mr. Gordon's share total change during the 4th quarter of 1999?
As I am sure you know, the company has suffered extensive dilution over the last 12-18 months which reduces the value of our shares. When we read that TSIG is establishing yet another option plan for employees--the latest involving 35 million shares--we are told this is in the best interest of the company. When questioned about new hires, there is a vague mention of possibly 2-3 people being hired. Who will end up getting the 35 million shares? How many employee option plans does TSIG have now?
We are also told that TSIG will have to issue yet another equity to finance the ongoing expenses of the company. Because of the lagging stock price, this new equity is certain to be highly dilutive. With the last reported total of outstanding shares being 205 million shares, when do you anticipate needing to increase the number of authorized shares above 300 million?
Last year's 10K reported Mr. Gordon?s salary at $360,000. It has been estimated that at today's current rate of sales, it will take the company over 20 years to earn enough money to pay Mr. Gordon's salary for 1 year. Considering the company's lagging performance, is it not the only prudent action to reduce Mr. Gordon's salary to a level in keeping with the performance of the company? It is rumored that Mr. Gordon does not take his salary. If this is true and considering the horrible political cost of this inflated figure, the only reasonable action to take is for the Board of Directors to officially reduce Mr. Gordon's salary.
While the stockholders appreciate all the efforts of all the company's employees, it appears that some questionable management decisions have been made which have endangered the existence of the company and our investments in that company. I request on behalf of all the stockholders that management adhere to the highest principles of fiduciary duty. I and others will be urging fellow stockholders to pay strict attention to these issues.
Sincerely yours,
Suzanne Newsome |
