Pierre and Joe, As you and "everyone else you have spoken with" feel a problem exists regarding the relationship of John Dreyer and Presstek, please elaborate on the following quote:
"They also can't understand why the president of Pitman, John Dreyer, is on PRST's board. Like EVERONE else I have spoken with they perceive this as a HUGE CONFLICT OF INTEREST."
Please tell me where the impropriety is.... These days, it's certainly not unusual to find companies that include as members of their board, CEO's and/or knowledgable officers from suppliers and venders in their field of business.
Do you have reason to believe that the relationship between John Dreyer and Presstek is anything other than above board and open?? I believe this is a case of John discovering that Presstek does indeed have a solid future. I also believe that his acceptance of a board position may be due to his admiration of the leading edge technology that Presstek provides, learned through his Pittman association with Presstek.
Pittman is one of the largest graphic arts dealers in the US and handles all distribution of Presstek products exclusively in this country. John Dreyer has been their CEO since 1978. He has been employed there since 1965.
John is not provided a cash compensation for serving on the board of Presstek. He is provided five year options to purchase 7,500 shares of common stock at fair market value. He also was provided options to purchase at exercise prices 5,000 shares at $94.75 each, 2,500 shares at $99.25 each, and 10,000 shares at $70.25 each. As of 12-31-96, John owns the rights to purchase 22,500 shares of Presstek stock.
Presstek recorded sales of equiptment and consumables to Pittman of $3.4M. They had accounts receivable from Pittman of $2.3M as of 12-28-97.
It is my wish that Presstek locates a few more CEO's of companies to add to their board that have the background and intelligence of John Dreyer.
Neil |
