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Post by stevil on Nov 25, 2015 18:44:00 GMT -5
For a year and a half??? If he was fired, I would think it would be "here's your severance, and here's the door". How is it not severance when Al is taking over as interim CEO per the press release, it sounds like per the usual they are disguising the truth that this is severance pay after a messy breakup. While it's possible they could be disguising the truth to not scare shareholders, it'd be a horrible move if Hakan still has entry to the building if things ended poorly. None of this really makes sense to me- (Hakan) Hey guys, I don't feel like being CEO anymore. Any chance I could do something else and still get paid? (MNKD) Sure, Hakan. We've got extra cash to burn anyway. We'll make a new position for you so we can keep ya around since we like you so much. or (MNKD) Hakan, you're not cutting it. Al wants to take back over. We'll keep you around if you agree to still be productive and do work. (Hakan) Sure guys. I'm loyal and I take no offense to being demoted. It wouldn't be toxic at all to work together after you strip me of all my prior responsibilities. Anyone know if Hakan is under contract through 2017 or if this is the choice of MNKD? Might give us a peek into the financials... Can't imagine they would still offer executive pay with bonuses without an executive role if finances were tight. Ha, I hope not, anyway.
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Post by fedakd on Nov 25, 2015 19:10:37 GMT -5
And things just keep getting stranger and stranger.
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8-K
Nov 25, 2015 19:13:50 GMT -5
via mobile
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Post by sportsrancho on Nov 25, 2015 19:13:50 GMT -5
So Hakan is still around collecting salary until July 2017 - doesn't sound like he was fired. Still begs the question, why was his successor not prepared beforehand? Or are those here of the impression Al wanted to take back control of the company to get us through this period? You know that's what I think:-)
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Nov 25, 2015 19:15:36 GMT -5
Post by mnkdfann on Nov 25, 2015 19:15:36 GMT -5
IMO, there is nothing all that strange going on. People who find it strange only find it so because the facts do not match with what they imagined.
I think my explanation (Hakan simply retired at a normal retirement age as there was nothing at MNKD to hold him there any longer) is perfectly sensible and fits the facts. Like many people who retire, he is easing himself out. Stepping down from the C-suite, but still participating on a lesser, part-time, basis.
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Post by stevil on Nov 25, 2015 19:17:40 GMT -5
It just seems bizarre to think he gets promoted for a year, then gets 2 years additional pay at that job level. So 3 years of pay for 1 year of service. That's not a very good plan ha.
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Nov 25, 2015 19:58:37 GMT -5
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Post by dreamboatcruise on Nov 25, 2015 19:58:37 GMT -5
It just seems bizarre to think he gets promoted for a year, then gets 2 years additional pay at that job level. So 3 years of pay for 1 year of service. That's not a very good plan ha. Welcome to the modern world of executive compensation. My one stint with a large company (horrendously mismanaged, disaster of shareholder wealth destruction machine... yeah, PM me and I'll tell you what I really think), I saw the executives give themselves a big round of bonuses for closing an M&A. When it turned out to be a disaster lacking in due diligence sending shares plummeting, they gave themselves a new round of millions as "rentention" bonuses because they argued no one would want to stick around in such a bad situation without the bonus. If one whacks oneself upside the head with a 2x4 that logic almost makes sense. Not that the situation with Hakan is anywhere near that egregious... he had worked at the company for quite a long time. Not the best communicator, but he did put it over the line regarding approval. It's not fair to ordinary workers to have executive severances so much more generous, but in that regard the horse is well out of the barn.
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Nov 25, 2015 19:59:27 GMT -5
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Post by stevil on Nov 25, 2015 19:59:27 GMT -5
IMO, there is nothing all that strange going on. People who find it strange only find it so because the facts do not match with what they imagined. I think my explanation (Hakan simply retired at a normal retirement age as there was nothing at MNKD to hold him there any longer) is perfectly sensible and fits the facts. Like many people who retire, he is easing himself out. Stepping down from the C-suite, but still participating on a lesser, part-time, basis. Not trying to be a jerk, although I know this is a pointed question. Trying to understand where you're coming from better... Where do you fit the recent layoffs ( www.newstimes.com/business/article/MannKind-engages-in-third-round-of-layoffs-in-6541355.php ) and Matt's comments about said layoffs into your theory?: "The projected sales curve for our lead product is also different than we anticipated. All these things, taken together, cause us to continually re-evaluate our needs and our organizational structure to make it optimal from an efficiency and cost standpoint. This is just good business practice." Are you saying that MNKD let go of much of its R&D team (don't know how much they make, but would assume master's/PhD degree would put them in the $100k or so range to keep a $750k base pay (sorry for not linking to official document. Don't feel like digging). Let's be generous and say R&D had 150k base salary. That's 10 yearly employees that they got rid of to pay Hakan's remaining salary for the next 2 years.... to play a part time role.... That's not even including his bonuses that he's entitled to for this year that is close to his base salary. That fits? Link to Hakan's base salary: www1.salary.com/Hakan-S-Edstrom-Salary-Bonus-Stock-Options-for-MANNKIND-CORP.html
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Nov 25, 2015 20:00:33 GMT -5
Post by jeremg on Nov 25, 2015 20:00:33 GMT -5
As I had said previously, before it mysteriously disappeared, I think Hakan was let go for fiddling while Rome burns. It does not surprise me that they would offer him a 2yrs salary + bonus severance package as this would be necessary if he was terminated in order to have an amicable parting of ways. The clever wording in the Press Release "Hakan will stay on staff" was likely arranged to justify paying $2-3mil(?) over the next two years while the company is already struggling with cash. What bothers me the most is the fact that future financing and subsequent shareholder dilution will include money to be paid to this very "silly" man who in my opinion did the company a great injustice in his many public (and private) blunders as CEO.
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Post by lakers on Nov 25, 2015 20:01:09 GMT -5
It just seems bizarre to think he gets promoted for a year, then gets 2 years additional pay at that job level. So 3 years of pay for 1 year of service. That's not a very good plan ha. The arrangement aims at hard-blocking him from joining a competitor as he knew so much about TS pipeline dev and negotiation, and Afrezza CTO which expires after 7/1/17. BoD likely conferred w/ Sanofi who requested that strange arrangement. "Mr. Edstrom would provide the Company with a general release of claims and remain employed with the Company to provide transition and other services through July 1, 2017, subject to his earlier resignation or termination by the Company" UNITED STATES SECURITIES AND EXCHANGE COMMISSION December 15, 2014 ORDER GRANTING CONFIDENTIAL TREATMENT UNDER THE SECURITIES EXCHANGE ACT OF 1934 MannKind Corporation File No. 000-50865 - CF#31824 _____________________ MannKind Corporation submitted an application under Rule 24b-2 requesting confidential treatment for information it excluded from the exhibits to a Form 10-Q filed on November 10, 2014. Based on representations by MannKind Corporation that this information qualifies as confidential commercial or financial information under the Freedom of Information Act, 5 U.S.C. 552(b)(4), the Division of Corporation Finance has determined not to publicly disclose it. Accordingly, excluded information from the following exhibits will not be released to the public for the time periods specified: Exhibit 10.1 Exhibit 10.2 Exhibit 10.3 through November 10, 2017 through November 10, 2017 through November 10, 2017 For the Commission, by the Division of Corporation Finance, pursuant to delegated authority: Brent J. Fields Secretary
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Nov 25, 2015 20:05:10 GMT -5
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Post by stevil on Nov 25, 2015 20:05:10 GMT -5
It just seems bizarre to think he gets promoted for a year, then gets 2 years additional pay at that job level. So 3 years of pay for 1 year of service. That's not a very good plan ha. The arrangement aims at hard-blocking him from joining a competitor as he knew so much about TS pipeline dev and negotiation, and Afrezza CTO which expires before 7/1/17. BoD likely conferred w/ Sanofi who requested that strange arrangement. "Mr. Edstrom would provide the Company with a general release of claims and remain employed with the Company to provide transition and other services through July 1, 2017, subject to his earlier resignation or termination by the Company" Thanks for your explanation, Lakers. I'm not asking for myself. I'm asking for those on here whose stance I'm not understanding. I don't see how Hakan was anything but terminated. But I'm trying to give others the opportunity to help me so that I'm not incorrectly labeled a basher for simply offering my opinion. I figured I'd turn the floor over to them and allow them to prove their stance in hopes of converting a very willing non-basher into a believer. I just don't see it.
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Nov 25, 2015 20:10:06 GMT -5
Post by mnkdfann on Nov 25, 2015 20:10:06 GMT -5
IMO, there is nothing all that strange going on. People who find it strange only find it so because the facts do not match with what they imagined. I think my explanation (Hakan simply retired at a normal retirement age as there was nothing at MNKD to hold him there any longer) is perfectly sensible and fits the facts. Like many people who retire, he is easing himself out. Stepping down from the C-suite, but still participating on a lesser, part-time, basis. Not trying to be a jerk, although I know this is a pointed question. Trying to understand where you're coming from better... Where do you fit the recent layoffs ( www.newstimes.com/business/article/MannKind-engages-in-third-round-of-layoffs-in-6541355.php ) and Matt's comments about said layoffs into your theory?: "The projected sales curve for our lead product is also different than we anticipated. All these things, taken together, cause us to continually re-evaluate our needs and our organizational structure to make it optimal from an efficiency and cost standpoint. This is just good business practice." Are you saying that MNKD let go of much of its R&D team (don't know how much they make, but would assume master's/PhD degree would put them in the $100k or so range to keep a $750k base pay (sorry for not linking to official document. Don't feel like digging). Let's be generous and say R&D had 150k base salary. That's 10 yearly employees that they got rid of to pay Hakan's remaining salary for the next 2 years.... to play a part time role.... That's not even including his bonuses that he's entitled to for this year that is close to his base salary. That fits? Yes, still fits. Since when does the layoff of peons (so to speak) affect how much C-suite executives get paid? For instance, last year the CEO running Target in Canada killed the company there, closed 133 stores, laid off 17,60 people, and still took home over $50 million in salary and bonus. His bonus was about as much as severance pay to the people he laid off. Hakan is being paid peanuts in comparison, and he is even working part time to earn it. (And, as noted above, this also prevents him from joining a competitor.)
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Nov 25, 2015 20:17:42 GMT -5
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Post by stevil on Nov 25, 2015 20:17:42 GMT -5
Ok, I can maybe go with all of that... until the last part. I thought you stated he wanted to retire. Or he just wanted to retire from MNKD?
but then that brings me to my next question if so...
He worked so hard to accomplish a mission, then right before it happens, he decides he's had enough? I guess... but that's not really the personality of a CEO. I don't know too many guys who sign up for a job to get it 90% of the way finished. I guess you could argue that MNKD has fulfilled their duties and the ball is now in SNY's court, but if that were true, a successor wouldn't need to be as picky either as he's just playing wait-and-see for the next couple years.
It just makes way more sense to me for Hakan to have been terminated, but I guess your view isn't completely devoid of merit. I just think it's far less likely.
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Nov 25, 2015 20:22:00 GMT -5
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Post by mnkdfann on Nov 25, 2015 20:22:00 GMT -5
Stevil, at my company persons looking to retire have exactly the sort of retirement option I am describing. They can spread their passage to retirement over 3 to 5 years. Transition from full time, to part time, to no time.
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Post by rrtzmd on Nov 25, 2015 20:30:55 GMT -5
As I had said previously, before it mysteriously disappeared, I think Hakan was let go for fiddling while Rome burns. It does not surprise me that they would offer him a 2yrs salary + bonus severance package as this would be necessary if he was terminated in order to have an amicable parting of ways. The clever wording in the Press Release "Hakan will stay on staff" was likely arranged to justify paying $2-3mil(?) over the next two years while the company is already struggling with cash. What bothers me the most is the fact that future financing and subsequent shareholder dilution will include money to be paid to this very "silly" man who in my opinion did the company a great injustice in his many public (and private) blunders as CEO. It seems to me that MNKD should have announced simply that they felt it was time to find a new quarterback, and then bought Hakan out while giving him a plane ticket back to Sweden. As it is, investors are left with uncertainty while trying to figure out what, if any, role he is supposed to play through July of 2017. The image of him still being associated with MNKD can't be very encouraging to investors.
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Post by cjc04 on Nov 25, 2015 20:33:08 GMT -5
IMO, there is nothing all that strange going on. People who find it strange only find it so because the facts do not match with what they imagined. I think my explanation (Hakan simply retired at a normal retirement age as there was nothing at MNKD to hold him there any longer) is perfectly sensible and fits the facts. Like many people who retire, he is easing himself out. Stepping down from the C-suite, but still participating on a lesser, part-time, basis. No offense, but that's the most illogical explanation I've read yet........ So you're saying that right here, right now, in the midst of THE "make it or break it" moment of the companies history, the CEO, just appointed less than a year ago, decides it's a normal time to just retire? No way.
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