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Hey bro…

When your brother runs a large successful company, it might seem fine to hit him up for some cash. But when that company is publicly traded, as PC Mall (MALL) is, shareholders deserve to be told when their money is being used to help out family members. According to the company’s recent proxy, a company controlled by the brother of Chairman and CEO Frank Khulusi, received $200,000 last year from PC Mall under a software licensing agreement. That same brother was also employed — at a cost of $200,070 last year — by a subsidiary of PC Mall. A second relative — Khulusi’s brother-in-law — was also on a subsidiary’s payroll according to the proxy and received $265,885 last year as well as 20,000 stock options. It’s not clear from the company’s filings how long the brother and brother-in-law have been benefitting from the publicly traded company, since this is the first proxy the company has disclosed the deals. In fairness, the company did disclose this deep in an amended K it filed back in April. But few people tend to read the amended filings and when it comes to related-party deals, full and clear disclosure is always preferable.