Neil, this is the final form of the e-mail I sent to Paul Henry over the weekend: "Dear Paul,
While it has been some time since I last corresponded or spoke with you, perhaps you will remember that I am coming up on my 3-year anniversary as a stockholder in TSIG/TIGI. The 8-K just released has raised numerous questions which are being repeated ad nauseum on the threads. Perhaps you could clarify some of these issues for us.
1) Scott Roix's compensation package has been very controversial. His overall cash compensation could easily reach $1,000,000 per year. Is this an appropriate level of CEO compensation for a company that cannot pay its payroll taxes?
2) Do you know of any other publicly-owned corporation in which the CEO takes a large percentage sales commissions on a weekly basis in addition to an extremely generous compensation package?
3) In a response to another shareholder, Mr. Roix explained that his commissions are on sales that he developed for Affinity in the interim between the initial negotiations and the final agreement. Since the price of Affinity went up from 4,500,000 shares to 35,000,000 shares during this time period, does not the entire income stream belong proportionately to all shareholders?
4) Given the concerns listed in items 1, 2, and 3 above, will the Street view the company as one being operated for the benefit of ALL shareholders? Or does the CEO receive a disproportionate reward?
5) Is Mr. Roix concerned about the stock price declining some 20-25% percent since the release of the 8-K?
6) After reading the section on the termination of Robert Gordon's employment, some stockholders believe that Mr. Gordon will receive the $5,000 per month consultant fee for 3 months, keep the shares he had, and forfeit the remainder of compensation of his employment contract. Other stockholders believe that in addition to the 3-month consultant fee, Mr. Gordon keeps the shares he had, and that TIGI must pay Perch all the compensation as stated in the employment agreement. Could you clarify this issue for us?
Paul, as you well know the long-term stockholders in this company have suffered great paper losses on this stock. Many have substantial real losses. Mr. Roix in his web site letter stated that he was devoted to creating real value for all the shareholders. It pains me to point out that the 8-K seems to subordinate the interests of the common shareholder in favor of the CEO's interests. Many of us would like to believe that a new day is dawning. However, what we have seen so far is repugnantly familiar.
It is my intention to post whatever reply I receive from you on the Silicon Investor and Raging Bull threads.
Sincerely yours,
Suzanne Newsome |
