Yesterday, Microstrategy (MSTR) filed a pretty strange 8-K that hinted at lots of perks, without providing many details. For those that don’t remember, Microstrategy got into a spot of trouble back in 2000 for overstating its profits by tens of millions of dollars. In 2001, it paid more than $50 million to settle a series of shareholder lawsuits. Since then, the stock has bounced back and today, largely on an upgrade (to neutral which doesn’t sound like a ringing endorsement to us) by Banc of America, the stock is up another 5%.
As the stock has climbed, some people have raised questions over whether the company’s power structure is too concentrated ever since president and CFO Eric Brown left last year. Which brings us back to yesterday’s filing and the discussion that the board passed resolutions authorizing ” tickets to sporting, charity, dining, entertainment or similar events as well as use of corporate suites, club memberships or similar facilities that the Company may acquire.” A quick skim of Microstrategy’s filings shows that this is the first time that the company is talking about this sort of thing in their filings. Unfortunately, they’re not providing enough details on this new cache of perks.