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Technology Stocks : THREE FIVE SYSTEM (TFS) - up from here? -- Ignore unavailable to you. Want to Upgrade?

To: dfloydr who wrote (1182)	4/1/1998 11:38:00 AM
From: Rainier	Read Replies (2) \| Respond to of 3247

"However, I regard my shareholding as an "ownership position" and that gives me some responsibilities. I do not think we shareholders should just be back seat passengers in the corporate bus." Well said, Floyd! I like the company for its products (as well as I understand them) and business execution, but as owners we must hold management responsible for providing reasonable shareholder value. Having read the proxy, I will also vote no for proposals 1 and 2. I'd also like to write in a proposal to put a cap on Mr. Buchanan's compensation. Did anyone review the summary compensation table? His salary and bonus increased from $257k in 1996 to $620k in 1997 -- an increase of 141%. Additionally, has was given options for another 50,000 shares. I find this exorbitant given: 1. TFS is not a Microsoft or Intel, generating hundreds of millions of dollars of income -- it had $8.2M of operating income and net income of $5.2M in 1997. A salary over $250k does not seem particularly low for the size of the company. 2. While 1997 was an impressive turnaround year for TFS, it still didn't succeed in returning share price back to the level it had been in 1995 (see company performance graph on page 12 of the proxy). Mr. Buchanan does hold over 880,000 shares of stock, and such a commitment would normally make me comfortable with my much lesser stake, but I wonder how big a concern growing shareholder wealth is when the shares you've got are trading in the $20 range and you've got income over $600k? Lisa