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reply to daake07
Re: I see nothing wrong here
said by daake07:Maybe it's worth 6 mil to sell the useless turd of a company post bankruptcy for pennies on the dollar.. then again.. we ARE talking about a company which banked it's future growth on spectrum that would interfere with GPS and satellite radio.. apparently not good bets. LSq is a dead company.. just because they haven't expended all their cash is besides the point. The wireless carriers that exist this year and offer service, will exist next year.. wannabe players will not enter the market. There are no deals that this company can cut to get them out from under the deathbed they made for themselves save a company sale... and at that I doubt they'd even keep the LightSquared name.
You have to understand the huge task of actually bringing the company out of bankruptcy. I don't think there is a single person on this website who believes they will survive.
If they do -- somehow get out of bankruptcy and become fairly successful then they senior management should be paid well. Honestly a CEO making $700,000 is nothing. My company's CEO makes $9,000,000 cash before stock options and gifts. Our CFO and head council both make around $2,300,000 before stock gifts and options. Of course we also make $150,000,000 a year profit and are not in bankruptcy.
It's still either illegal and/or unethical to spend millions of dollars and call it a bonus if the company doesn't acutally do business in the wirless industry. Let's be clear.. you earn a salary for work.. you earn a bonus for performance... this company has no "PROFIT" to be made, in wireless or otherwise.. if anything it's incurred and continue to incur massive losses, something I do point out that MCI world-com lied a great deal about and got the CEO in huge trouble..
"If the executives satisfy cash preservation goals, make progress in LightSquared's efforts to resolve certain regulatory issues and emerge from bankruptcy by the end of 2013, they'll receive vesting of all issued stock and "aggregate incentive payments of cash up to 285% of each such key employee's annual salary," LightSquared said. Hitting less aggressive goals, like exiting bankruptcy by the end of June 2014, would come with smaller payouts, like a cash bonus equal to 100% of the executives' annual salary, in the case of the mid-2014 bankruptcy exit."
Look at the first word in the quote above. It says it all.
And the money those guys are making is nothing. I understand it's a tiny business, but the pay is reasonable when compared to large company C-level guys.
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