Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : HOLL -- Ignore unavailable to you. Want to Upgrade?

To: Pluvia who wrote (44)	1/5/1999 7:09:00 PM
From: Pluvia	Read Replies (1) \| Respond to of 126

The low down dirty truth about BIGE's Husband & Wife team salaries.... Husband and wife (Mitch and Laurie) take $200,000 a year plus minimum bonus of $25,000 a year plus CPI-U on the salary (maybe on the bonus) since inception of the employment agreement (from IPO time I think) apiece. That's probably $500,000 a year or more, which as an annuity has a present value of $5 million. Look at Exhibits 10.4 and 10.5 in the 9/30/1998 10-Q. In the body of the 10-Q look at (11) RENEWAL OF EMPLOYMENT CONTRACTS FOR KEY OFFICERS AND OTHER EMPLOYEE INCENTIVES: [my comments in brackets] During the quarter ended September 30, 1998, the Company renewed its employment contracts with the Company's Chairman of the Board and Chief Executive Officer and with the Company's Vice Chairman and President. The contracts were renewed for a five-year period beginning on July 1, 1998 on the same terms and at the same salaries as in the prior employment contracts. In connection with the renewal of these employment contracts, the Company granted 100,000 shares [that's $3 million at $15/share] of restricted Common Stock to each of these executive officers. The shares vest over three years, except in the case of a change in control, as defined in the stock grant, in which case the shares vest immediately. The fair market value of the shares on the measurement date of approximately $306,200 [$3 1/16] per executive was recorded as deferred compensation and is being amortized to expense over the three-year period that the shares vest. Additionally, in connection with the renewal of the employment contracts, the Company awarded the Chairman of the Board and Chief Executive Officer and the Vice Chairman and President each a cash bonus equal to two months' salary to be paid on or before December 28, 1998. The restricted stock grant and bonus represent an inducement [!!!] for renewal of the contracts, plus compensation for services as well as for the officers' extension to the Company of a $1.1 million unsecured line of credit and their willingness to forgo two months' salary in 1997.