All,
Just wanted to jot down a few thoughts as we approach what may be the beginning of the end of the reign of Mike Hackworth and his cronies. Yeah, I really believe that Teo will prevail and I hope for everyone's sake, especially all my friends at Cirrus, that what will transpire will be in everyone's best interest. So, Mike Hackworh, this is for you:
First, the re-pricing of stock options. From the fall of 1995 after the stock fell from its lofty highs of $60 all the way to April 25, 1997 when it hit $8.50 Mr. Hackworth and company were asked repeatedly whether or not options would be re-priced for employees. Hackman even came out with a memorandum to all optionees stating that shareholder trust would be breached if Cirrus were to do this. Consequently, the board of directors voted not to re-price options at that time. Well everyone knows that there have been three RIFs since March 1996 and until the options were finally re-priced earlier this year, one can imagine the brain trust lost to the competition or employees just leaving to get a better deal. Question to Hackman: What is different now from before? Did you finally realize that shareholders had lost faith in all of your decisions so you decided "what the hell"? It's the proverbial "close the barn door after the cows have gotten out" deal. By the way, it was Mr. Kelly who should get credit for getting the options re-priced. It was one of his final acts of defiance.
Now, you get a little pressure from a huge shareholder, Teo. Instead of looking at this like you should, that is, what is in the best interest of the shareholders, you look at it with the attitude of what is in the best interest of Mike Hackworth. No one knows what a buyout/merger would be worth but is it worth anything with a poison pill defense? Would anyone be interested at this point in time given the "penalty" they will have to pay if they want Cirrus? Does the investment community support the actions taken over the last week or even the last 24 months. The answer is...$11/share average since the beginning of the year even after a fair past couple of quarters.
So you see Mike, you have not only lost the loyalty of your employees but you have also lost the trust of the investment community. You and your board of directors have absolutely no credibility with anyone. You have very little time left so I suggest you sit back and enjoy the ride and quit fighting the inevitable. Lets get Cirrus on the right path with people who are interested in stock holder value and know how to take care of their employees.
Calvin Scott |
