Hi Scott:
My opinion too is that executive compensation is way out of line frequently with any standard of justifiable rationale. Also, I understand that top management of Connacher is not egregious when compared to some other executives. My problem with respect to Connnacher, is that when reviewing per share equity, Connacher performance has been frankly abyssmal. Connacher per share equity has declined in excess of 60% since the pre crash date of summer 2008. This was caused directly by the obvious CEO decision to curtail production due to a crash in oil prices in conjunction with a risky decision to proceed with a seriously depleted position of under capitalization. A situation caused in my opinion by risky and reckless top executive decision making.
The situation is that two years later, as a result of the decisions made during that time of crisis, per share vaues have cratered. What has been the consequences upon the executives responsible for the decisions made pre crash, concurrent with the crash and following the crash which left the company in an extremely perilious financial condition? Have they been replaced? No! Have they had to take pay cuts in line with the per share decline in SP?" No! Have the shares awarded to them under the ESOP been diminshed? No! In fact, they have been increased and in large part, this has been a directly paid for not by the culpable executives but by the already diminished suffering individual shareholders whose interest the officers of the company have a direct fiduciary responsibility to. By a any standard of objective, reasonable analysis the ececutive officers and BOD have failed in their primary fiduciary responsibility. The protection and preservation of share holder capital.
Has there ever been an indication that the executive officers and BOD of Connacher feel the pain suffered by the common shareholders? NO! Is there evidence of executive deprivation as a result of their actions? NO! Is their any reason that individual shareholders should have confidence in executive management and the BOD? NO! So, I guess we have only the hope that past bad decision making will somehow by design or accident be avoided in the future. And that frankly is a narrowing of odds that I do not find comforting!
Brian
