This is a good move.
Banatao had an emotional attachment to S3 as a co-founder and may have
uninentionally acted as a brake rather than an accelerator.
Often entrepreneurs succesfully start companies and bring them to a
certain level only to become counterproductive when the company has
grown to a point where it does need a new spark to take it to the next
plateau. The founders are not always the most suitable ones to provide
that spark.
Seems to me that this is taking place right now.
Holdt, from what I have read and heard, is well-respected and will not be
hampered by S3 being "his baby." He will do what is right.
Contrary to what I have read on other posts, GJ is not demoted or side-
tracked, he stepped up to the position of Vice Chairman of the Board.
Generally, when you are CEO, COO and/or President you are in a position
where you can be kicked out. Once you're on the Board you can do the kicking.
GJ was not hired for his nice blue eyes neither was he a cronie nor did
he get his job through favoritism. He brought certain qualifications to S3
the company felt it needed. The fact he has moved up indicates the
company still feels that way. However, it is unclear what his
immediate area of responsibility will be, but I am sure it is needed.
Obviously, being involved and responsible for the day-to-day may have been
too much to ask. Diversification was likely needed but the result of
the decision made left much to be desired, but Monday quarterbacking
is always easy. The restatement issue occurred on his watch, but the
administrative side of running a company was likely not his forte.
You tend then to rely more on others and here he may have erred.
With the repricing of options of middle and lower echelon employees
announced earlier this week plus the changes announced today it is
evident that the Board and management are working toward increasing
the focus of its operations and that is encouraging to see.
It takes a man to make the move Banatao made. As co-founder and as one
of the largest (if not the largest) individual shareholder of the
company, this must have been a difficult decision.
This speaks well of both him and the other people to make the changes
they did.
All in all two very positive moves that should position the company for
a recovery of its stock price to a level in line with other, comparable
companies in the currently depressed market.
Once S3 gets some new products to market sooner than later, like the
GX3 say in the next month or so, we should make some real progress.
This leaves one main issue open IMO and Ken touched on that. We need to
see an majority of outsiders on the Board. Ideally, add two director
positions and fill these with outsiders.
I feel a lot better about S3 than I did a week ago.
George can now truly say onward and upward.
JMHO
Jan |
