Stewart D Hutcheson CEO and former CFO of the old LWIN paid $12 for $4,165,339 worth of stock. Glenn T. Umetsu
Chief Technical Officer paid $10 for $3.283,914 worth of stock.
For what? What did those two do that was worth $7,449,253?
Had they been paid a $7,449,253 cash bonus from the company treasury there would have been a stink raised, especially from the creditors and bankers. So instead the company treasury issues $7,449,253 in stock instead of cash and it's only the shareholders that will pay so that's ok. As an added benefit to Hutheson and Umetsu, if they hold a year, the bonus will be eligible for long term capital gains treatment instead of being treated like ordinary income so the taxpayers get taken along for a ride along with the shareholders.
I have no objection to stock options being used as true incentives such as when an option is granted well above current market price that doesn't vest for three years or more. But these kinds of below market options are simply a way for managements to give themselves outrageously large tax advantaged compensation.
Never forget that the managements and boards of all publicly traded companies are in it only for themselves, no matter what their sanctimonious proclamations about serving the interests of the common shareholder. The ONLY use managements and boards have for shareholders is for shareholder enthusiasm to make their stock options valuable. We're only taken along for the ride, and will be taken for a ride if not careful and quick. |
