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Post by sayhey24 on Jul 23, 2023 7:27:21 GMT -5
Wow - 300% of target. That sounds very impressive. The closing price on 8/27/2020 was $1.70. Did Mike have to pay the $1.70 as the warrant price or were the 1M shares gifted to him and he just needed to pay the tax? The 500k sale gave him about $2.3M
When all said and done according to the footnotes he sold 500k for tax liabilities and the remaining transactions occurred pursuant to a Rule 10B5-1 Plan adopted on December 5, 2022. So, assuming an average of $4.33 pps he ended up with $1.3M for the beach house. For that you are not even getting oceanfront in OBX.
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Post by prcgorman2 on Jul 23, 2023 8:19:17 GMT -5
Same for LA. $1.3M will get you a reasonable house in the burbs. Even where I live, it ain’t gonna be a palace.
This is all a lot of speculation for not much benefit in terms of judging whether the CEO is over compensated as compared to other CEOs in similar sized companies of similar age in the same industrial sector. But, it’s been semi-amusing, so carry on!
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Post by agedhippie on Jul 23, 2023 8:40:37 GMT -5
Wow - 300% of target. That sounds very impressive. The closing price on 8/27/2020 was $1.70. Did Mike have to pay the $1.70 as the warrant price or were the 1M shares gifted to him and he just needed to pay the tax? The 500k sale gave him about $2.3M ... The stock is free, they are RSUs. I feel that Martine should have got those instead since she is the reason the stock price is where it is.
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Post by phdedieu12 on Jul 23, 2023 8:45:14 GMT -5
Wow - 300% of target. That sounds very impressive. The closing price on 8/27/2020 was $1.70. Did Mike have to pay the $1.70 as the warrant price or were the 1M shares gifted to him and he just needed to pay the tax? The 500k sale gave him about $2.3M ... The stock is free, they are RSUs. I feel that Martine should have got those instead since she is the reason the stock price is where it is. That makes so much sense!
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Post by agedhippie on Jul 23, 2023 9:23:21 GMT -5
The stock is free, they are RSUs. I feel that Martine should have got those instead since she is the reason the stock price is where it is. That makes so much sense! Well, it would have been an ethics issue on her part so that would never be viable, but it's a good example of what happens when you have poorly drawn incentive parameters. In this case there was nothing to do other than wait while UTHR launched the product. If the board wanted to do incentive payments a better target would have been Afrezza sales since that would require initiative and work. In the case of Tyvaso DPI all that had to be done was simply not getting in UTHR's way and the shares would get repriced to account for the new revenue stream.
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Post by tarheelblue004 on Jul 23, 2023 12:55:39 GMT -5
Pretty sure phdedieu12 was being sarcastic, aged. So from "Mike deserves no credit for Tyvaso revenue streams", we now have "Mike's incentive structure should explicitly exclude revenue from Tyvaso". Remarkable Poor guy - he has managed to turn a cash-bleeding enterprise into a soon-to-be-profitable, 4 revenue stream business, but can not get credit for 50% of the revenue streams! A few questions for anyone who cares to answer: 1) If striking partnerships is really so easy that the CEO should get no credit for it, why was Hakan unable to strike a single deal for his 3 years before getting fired? Mike came in, had a consulting firm do an analysis on potential partnerships, and then closed an incredible deal with an incredible partner. The results of the deal should then be excluded from his performance metrics? 2) Is the metric that shareholders should care about, and judge a CEO based on, A) performance of the entire company - potentially including share price, peer benchmarking, revenue growth, profitability or B) performance of only the revenue streams where the company itself is charged with sales? As an FYI for 2B, this literally dis-incentivizes the CEO to do deals with partners because none of the time and money spent on those endeavors is factored into performance. 3) Is a CEO's job just to get out of a partner's way? Or is the CEO's job to A) close a deal that benefits smaller co B) hit smaller co's milestones for clinical trials C) scale manufacturing and drive efficiencies during an extremely aggressive ramp-up D) manage the partnership with the CEO of an enormous company with large ambitions that has eaten up other smaller companies E) navigate relationships with current partner and future partners as the smaller co develops a broader partner landscape and does R&D on products that could one-day even compete with larger co F) co-develop a novel IoT device with larger co based on smaller co's technology G-Z) the rest of their job leading every other business unit and function in the company I don't think the view that "Mike should not get any credit for the deal, it is all Martine" deserves much attention. But here is an alternative point of view for anyone interested, already alluded to in Questions 1 and 3A. For those who have not researched Martine Rothblatt, the CEO of United Therapeutics, it is worth your time to do so. She is an absolute BEAST - an extremely tough, successful, and litigious entrepreneur. You can learn more here: seekingalpha.com/article/4447134-liquidia-martine-rothblatts-united-therapeutics-is-tough-to-beat . At the same time she was negotiating with MannKind, she was also likely* trying to do a different deal with LQDA - one that would grant UTHR exclusivity to sell LQDA's drug, without promises of commercial success. (*Liquidia has acknowledged an unnamed company making such an offer). Martine’s fiduciary responsibility in the deal with MannKind was the best interests of UTHR, not MNKD. The reason the deal is so good for us is that Mike negotiated the deal on behalf of MNKD. Anyone who wants to take for granted the amazing deal with have with UTHR or claim that "anyone could have done it" ignores that A) Mike took an analytical / strategic approach to finding the right partner for a deal B) Hakan could not do a deal in years of being CEO while asking for partners in conference calls C) Mike did not just do a deal, but one that heavily benefitted MannKind D) we had so little leverage at the time and E) Martine was the party on the other end negotiating for the best interests of UTHR. Mike showed poise in the highest-stakes strategy, sales and negotiation and made what is proving to be an amazing business move. Anyhow friends - I will go back to focusing more on the future. Just couldn't help myself on this one. But in terms of what is important - Q2 earnings will be great! I think we can achieve $45M and maybe more - Afrezza is a dark horse. Q3 earnings will be fantastic. And each quarter will only get better and more profitable. So for that, I will just say thank you Mike
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Post by prcgorman2 on Jul 23, 2023 13:59:18 GMT -5
Don’t forget prior to UTHR negotiating a deal, Mike also steered the development team to do a Phase 1 trial with treprostinil on TechnoSphere, which is now the product we call Tyvaso DPI. Mike didn’t just answer the phone and ink a deal UTHR was interested in. He took the product development steps to get UTHR interested. UTHR is a normal, competitive, company. My memory is there were 3 companies developing competitive products, LQDA, MNKD, and a 3rd I don’t remember but that UTHR acquired.
I can’t understand how Martine gets credit for being brilliant (and a BEAST) but when it comes to the deal with MNKD, she was just a kind, sympathetic soul offering charity to the namesake of Dr. Alfred Mann. What a load of horse manure. She’s brilliant, period. The deal with MNKD was smart. MC didn’t have to stay out of the way, he had to manage a deal and then ensure execution before, during, and after FDA approval.
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Post by cretin11 on Jul 23, 2023 19:49:53 GMT -5
Yes, I just happened to notice that last week and I have been meaning to point that out in this thread. That 1-million shares purchase shocked me. I didn't know he made that purchase. I take back anything I might have said bad about him for selling so many shares because he has bought more than he sold. I say "might have" because I really don't even remember what I said about him (memory is an awful thing to lose), but I know that I "thought" badly of him for it. Anyway, I'm back in your corner with you now, Mike. Go get 'um! Keep fighting the good fight! Mike didn’t buy those 1M shares. They were granted to him as restricted stock units because of his “amazing” performance review. secfilings.nasdaq.com/filingFrameset.asp?FilingID=16681117&RcvdDate=05/22/2023&CoName=MANNKIND%20CORP&FormType=4&View=htmlA previously reported restricted stock unit award granted on August 27, 2020 vested on May 22, 2023 upon the achievement of performance objectives established by MannKind's compensation committee at the time of the approval of the award. Specifically, (i) the closing price of MannKind's common stock on May 22, 2023 was not less than the closing price on August 27, 2020 and (ii) the percentile ranking of MannKind's total shareholder return (TSR) over the period from August 27, 2020 to May 22, 2023 relative to the TSR of the Russell 3000 Pharmaceutical & Biotechnology Index over the same period was greater than the 90th percentile. As a result, the performance objective was achieved at 300% of target, resulting in a total share delivery of 1,500,000 shares.Thanks awesomo for that very relevant clarification.
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Post by mymann on Jul 23, 2023 19:52:45 GMT -5
If management starts buying shares with their own money, that would be a strong bull signal.
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rebby
Researcher
Posts: 73
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Post by rebby on Jul 23, 2023 20:49:29 GMT -5
If management starts buying shares with their own money, that would be a strong bull signal. While I agree that purchasing shares with their own money would be very bullish, I don’t see the lack of purchases as a bad sign. The company leaders already have their salary, bonus and RSUs tied to the company’s success and most are looking to diversify beyond MNKD, which I believe to be prudent.
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Post by agedhippie on Jul 23, 2023 22:44:41 GMT -5
Don’t forget prior to UTHR negotiating a deal, Mike also steered the development team to do a Phase 1 trial with treprostinil on TechnoSphere, which is now the product we call Tyvaso DPI. Mike didn’t just answer the phone and ink a deal UTHR was interested in. He took the product development steps to get UTHR interested. UTHR is a normal, competitive, company. My memory is there were 3 companies developing competitive products, LQDA, MNKD, and a 3rd I don’t remember but that UTHR acquired. I can’t understand how Martine gets credit for being brilliant (and a BEAST) but when it comes to the deal with MNKD, she was just a kind, sympathetic soul offering charity to the namesake of Dr. Alfred Mann. What a load of horse manure. She’s brilliant, period. The deal with MNKD was smart. MC didn’t have to stay out of the way, he had to manage a deal and then ensure execution before, during, and after FDA approval. The deal with UTHR was done in 2018, the incentive agreement was put in place in 2020 by which time it was simply a matter of UTHR shepherding it through the FDA approval. The subsequent share price increase was linked to the 2018 agreement and nothing that Mike did subsequent to the 2020 agreement. The incentive agreement should have been structured to allow for that gain, it was sloppy. On a different note; part of Mike's pay is in stock so I would say at this point he has a pretty high single stock risk so selling down some of that is not a bearish signal especially when it's done via a plan as it mostly is. Buying more stock would be risky. In other words selling stock is expected.
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Post by Clement on Jul 24, 2023 6:08:54 GMT -5
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Post by boytroy88 on Jul 24, 2023 10:20:27 GMT -5
What's with the 0.13 drop? Don't see any news.
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Post by porkini on Jul 24, 2023 10:26:46 GMT -5
What's with the 0.13 drop? Don't see any news. Low quality, low volume investors?
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Post by akemp3000 on Jul 24, 2023 10:46:52 GMT -5
Just the day trading games.
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