As of December 31, PERS had 3.74 million shares outstanding and $6.143 million in working capital, or approximately $1.64 per share. The shell has been essentially dormant, except for some trading activities, since 1995. It is 82.5% owned by John H. Michael, its only employee, who receives a base salary of $175,000 per year and a percentage of any trading profits he generates. Mr. Michael generated trading profits of $495,000 during the first three months of its current fiscal year and accrued compensation equal to $426,000. Additionally, the company purchased 340,000 shares from Mr. Michael in 2000 at $1.35 per share. IMHO, PERS will complete an acquisition only when Mr. Michael gets tired of trading with other people's money.
From the last Form 10-K:
freeedgar.com
"...In January 1997 the Company's Board of Directors approved a modification to Mr. Michael's Employment Agreement providing for annual performance compensation equal to no more than 60% of net trading profits in addition to his other compensation. During fiscal 1998 Mr. Michael elected to accept only 75% of the compensation provided by his employment agreement. The balance of $43,875 was waived. During fiscal 1999 Mr. Michael elected to accept total cash compensation of $40,000. The balance of $135,000 was waived. During fiscal 2000 the $285,000 bonus paid to Mr. Michael and the stock options granted to Mr. Michael to purchase 300,000 shares at $1.37 per share were attributable to trading profits during fiscal 2000 and to Mr. Michael's willingness to waive certain compensation in previous years. On September 24, 1999, as provided for in his employment agreement, Mr. Michael elected to extend the agreement for a period of three (3) years from September 25, 1999 to September 24, 2002." |
