You are right, the Management team is not interested in changes.
Since they do not owen much company stock, they do not care much
about the company's stock price. In some sence, they like the stock
to go lower, then they can assign a lot of stock option to themself
at very low price. Look at the annual report of company, the salary
of management is 50% higher than average salary of technology
companies in chips or networking business. For example, the CEO
pays himsel more than $500,000 basic salary compare with
average salary of $260,000. Chip maker companies such as AMD, CY,
... the company are much larger than SMSC but their basic salaries
were about or below $260,000 which is much lower than $500,000.
networking companies such as COMS, BAY, CSCO,.... the companies
are much biger than SMSC, their salaries are similar as SMSC.
The SMSC company did not tight or tight very little the company's
performance with pay of management team. Since their basic salaries
are very high and they don't owen many shares of stock, why do
they need to care about the stock price? This is the main reason
they don't care much about the stock price.
I hope someone write a letter to CEO of SMSC and let him know our
shareholder's concern.
Peter |
