To: Skip Jack who wrote (3742 ) 5/17/1999 4:27:00 PM From: Mike Fredericks Respond to of 13157
Skip (and others)- I received a reponse from Ted O. in investor relations, asking me to read the 10Q and then call him. As I do not have access to a telephone during normal business hours, I sent him an e-mail in response simplifying the questions I asked. Without repeating it all here, I asked whether or not Mr. Samuels receives 2% of market cap increases as compensation, whether he receives that bonus if the increase is due to stock price appreciation or dilution, how the bonus will affect the quarterly bottom line (IE will the company take a charge every quarter akin to the 3.4 million it took last quarter) and whether the company has published the formula to determine what portion of his bonus comes in the form of cash and what comes in stock. As soon as I get answers, I will post them here. One thing I did notice in re-re-re-reading the proxy report... assume the following scenario: End of Q1 stock price is 11 1/4 (which it was) End of Q2 stock price is 20 (could happen) End of Q3 stock price is 5 End of Q4 stock price is 20 The bonus plan does not give compensation based on increase in market cap... it gives bonus based on current market cap - (maximum market cap of last time the bonus was paid). So as I read it, there would be a bonus at the end of Q2, but not at the end of Q4, since there already had been a bonus for getting to a stock price of $20. That answered one of the questions I asked Investor Relations in the fax I sent.The difference is that I just made a few calls and asked several questions to assess the possibilities of how this impacts our company. You on the other hand are writing a thesis on how it impacts our company. I think we both will end up in the same place, I just decided getting it done quickly and move on to other issues at hand. I can't make phone calls during business hours, but I am in the process of contacting ACTV and will keep everyone here posted, unlike you who simply state you have the answer and then won't tell anyone the details (what I want are the details....)By the way, as far as I am concerned we are done with this issue, so please don't expect a response if you reply. Thanks!!!! I won't expect one. Just means I'll have to get the details from the company itself rather than get them from you. I understand that you are busier than I and don't have the time to handle every question that arises on this thread and, heck, that's what we pay investor relations for, right? Just do me a favor and don't attack me for making mistakes and then refuse to point out the mistake... If you do choose to respond and attack what I've said (I think the word attack is a bit harsh, since I am asking you to do it; Since I want to be proven wrong I also won't take it personally if you do attack my posts, in fact I'd even thank you for it and consider it a favor. And no, there is no sarcasm here, I'm quite serious.) -Mike