Post of the Day
May 18, 1998
From our AOL
Subject: THQ Board
I guess I don't know what it is that we are "angry" about with respect to THQ's board. I don't understand what you guys see as the problem with the current board.
Is it because:
- They chose Farrell to run the ship in Feb. 95?
- That we want to change management? And one way to do that is to get on the board.
- We feel that THQ has done a terrible job raising shareholder value from $3.5 to $25 in under 3 years?
|"THQ needs to be able to retain and attract talent. Unfortunately for shareholders, options are a part of today compensation packages."|
Nothing against you Vic, but I have heard you are about 21 years old. You sound like you are a very sharp guy. But, I don't think at your young age you can bring enough life and business experience to the table. I am sure it can be a bit of a trip to state that you will be nominated to the board, but I am not sure what you could contribute.
Besides, I am completely happy with how things are going now. I really don't know what you guys are complaining about.
I guess we will have to agree to disagree on this one.
Subject: Re: THQ Board
I will tell you precisely why I am backing Rick and Vic's nomination. Through the years this company has consistenly turned its back on its shareholders. I have participated in the last 9 teleconference calls. What is the thanks I get...I get shutout from the questions. I have attended the last two E3 shows..what is the thanks I get...I get labelled a "stalker" for trying to check up on a company I have half a million dollars invested in!
So far, none of the four of us have been invited to THQ's E3 party though they know darn well we are going. I am not about to beg them for an invite like last year. Last year we sent LT to represent us as a group at the shareholders meeting...what is the thanks he gets? Two of the board members (Jagid and Burstein) roll their eyes and walk out on him. Farrell makes a snide comment about "he feels he is being interviewed". Yet I just watched on tv as a 12 year old kid was questioning the Boeing Board of Directors about what Boeing is dong to increase shareholder value....a 12 year old kid can ask Boeing this, but we the owners of 10% or more of THQ can't seem to get THQ to even listen to us.
Deborah Lake questions me about how I would know they are spending $2 million on Quest advertising....my response..."it is in your OWN ad in Gameweek!" These board of directors are way overcompensated...I mean 10,000 options a year...that is averaging over $100,000 plus what they get paid just to meet a couple of times? Two things are holding us to the ridiculous P/E ratio we currently trade at.
|"I vote NO on the options..I want Rick to have as many shares as possible going into the meeting and I want Vic nominated to the Board, a guy who will represent SHAREHOLDERS instead of management!"|
- Nobody trusts THQ's management that they can replace XXX revenue in the future.
- The ridiculous number of low priced in the money options floating around that the THQ board cashes in on whenever they get the chance. Need I say again the majority of us own more shares in this company than Farrell does. That is pathetic! I am all for the employees of THQ getting lots of incentive options..yet that doesn't seem to be the case.
Wildman, you tell me how many shares were outstanding when both of us invested in THQ....2-3 million tops...remember we used to estimate THQ could earn $1-$2 per share in 1996 and 1997..they would have blown those estimates away had the number of shares not more than doubled on us due to options. Seems THQ didn't hesitate to do a 1-15 reverse split and wipe everyone out three years ago..yet where is our split when THQ soared over $33? No split..instead THQ just wants to double the sharecount again through options...this is the classic management vs shareholders dilemma.
I vote NO on the options..I want Rick to have as many shares as possible going into the meeting and I want Vic nominated to the Board, a guy who will represent SHAREHOLDERS instead of management!