Mr. Bailey then added, “When I agreed to accept the position of CEO of EDCI on July 1(st), 2009, I knew there were many challenges that lie ahead. The continued minimization of cash burn at the EDCI level continues to be a top priority and many difficult decisions have been made to facilitate this initiative, including cutting overall EDCI corporate salaries by an average 19% as of July 1, 2009. As part of this initiative, I voluntarily reduced my salary by 33% and Matthew K. Behrent, EDCI’s VP of Corporate Development and Legal Counsel, agreed to reduce his salary by a like percentage. In regards to the EDC business, we continue to pursue negotiations with the unions representing our Hannover, Germany workforce with the goal of securing wage concessions in order to right-size our overall cost structure.”
Mr Bailey earlier cancelled his entire option gun in response to deteriorating business conditions. You don’t take half your bonus when your employees are being laid off, rather you take NO BONUS. It is called LEADERSHIP. It is a core concept in the world of small business. It exists in the world of publicly traded stocks. The trick is finding them.
Point of disclosure: I am long this company. My posting to Greenbackd on EDCIs breakup value is not a recommendation for others to take a position in this company’s stock. Investing in individual issues is a risky endeavor.