Why I am Voting Against the Escrow Shares (part 2)
Hi, all. I just got home from cataloguing medical emergency supplies and equipment destined for Russia.
Question: Why not support the escrow shares, if they help dilute the CEO’s control?
I have pondered this argument a great deal. Yes, dilution of control by one shareholder is important, even though the voting control would continue. However, the voting control would continue and the cost to individual shareholders for this dilution of control would be the increase from 8,469,083 shares outstanding to 12,219,083 shares outstanding, an increase of 3,750,000 shares or 44%. If the voting control issue had been resolved, although I think the escrow shares are somewhat excessive, I would have supported the extension.
I understand that the loss of the escrow shares would decrease the number of stock options available to the company. This is an important issue that I will examine later.
Regards,
Ed |
