An open letter I just sent to the investor relations department of Mattersight (previously known as eLoyalty) -- feel free to write them at the above address. More to come:Ladies and Gentlemen:
I know you won't be able to reply (I guess I'll just hire a lawyer!), but how is it even remotely possible -- at Mattersight (and before that, at eLoyalty) a company with a board of directors charged with SOX-, Dodd-Frank- and general fiduciary-duties -- that a CEO and Chairman who has never turned in a single dime of GAAP earnings per share, after taxes, in over 13 years of running eLoyalty, and now Mattersight. . .
. . .receives multiple millions in annual performance bonuses, and all-cash executive compensation?
How can that be? Not a dime of net profit, under GAAP (not Conway's forever "as-adjusted" accounting), in over 13 years -- for the shareholders -- ever!?
And, just on a rough total for Kelly Conway alone -- I get over $7 million in pure cash compensation, going back to 1999.At some point, I would think that Conway would be so embarrassed by his own ridiculously-wrong rhetoric (we see profitability "just around the corner" -- for 13 years, running!) -- that he would turn in his resignation, voluntarily.
Honestly, I hadn't looked in on this investment for about five years -- figuring that the venture partners would eventually put him out, after seven years straight of net GAAP LPS (losses per share), each comprising additions to the shareholders' deficits. . . but no, now he has a shiny new company to run, to boot.
Maybe I'll just start a blog called Mattersightreviewed.blogspot.com. Yeh -- that's the ticket.
