To all,
Regarding the registration to sell 100,000 CSCC shares a few weeks ago by the CEO, Dan Smith. As I recall, there were some heated posts on this thread condemning the move at that time and a lot of confusion about the size of Smith's stock and options holdings in CSCC. I believe this news also helped to push the stock below $30 for the first time this year.
I just received the Cascade annual report and proxy statement in the mail. I thought some here might be interested in what the proxy statement reveals about Smith's holdings.
On page 10 of the proxy statement, a table shows that, as of 12/31/96, Smith held options on a total of 1,924,556 shares. Options on 1,368,597 shares were exercisable at that time and the remaining 555,959 shares were not yet exercisable.
On page 3 of the proxy statement, a table lists Smith's total beneficial ownership as of 2/20/97 at 1,661,034 shares. A footnote indicates that 1,559,934 shares of this total were in the form of exercisable options. The remaining 101,100 shares are presumably in the stock itself.
If I am interpreting the tables correctly, the following three conclusions should be correct:
1) Smith held options on 191,337 shares which became exercisable between 12/31/96 and 2/20/97. (1,559,934 minus 1,368,597)
2) The 100,000 shares registered for sale represented about 5% of his total interest in CSCC and about 52% of his newly exercisable shares over the period 12/31/96 to 2/20/97.
3) His personal paper loss in CSCC over the last three months is approximately $114M! ($60 x 1.9M shares)
I wasn't happy to hear about the registration to sell when it occurred, but looking at the proxy figures I have to agree that the relative size of the sale seems reasonable as a diversification strategy.
In addition, page 11 of the proxy states:
"No stock options were granted to either the Chief Executive Officer or any Named Executive Officers during the fiscal year ended December 31, 1996 as the Committee determined that the stock and option holdings of the Named Executive Officers adequately align their interests with those of the stockholders of the Corporation."
Tom |
