Lots of security expenses at Abraxis…

October 6, 2008

On Friday, Abraxis Bioscience (ABII) filed its proxy and one of the things that jumped out at me was the hefty increase in security expenses for Chairman and CEO Patrick Soon-Shiong: $1.06 million, compared with $727K last year.

What potential threats warranted the 45% increase? The proxy provides few details, other than this footnote: “For security-related reasons, we provide Dr. Soon-Shiong with the use of cars, security drivers, security systems for his residences, and personal and family security services.” The company also cites security — and management efficiency — as the reason that Dr. Soon-Shiong needed to use the company’s corporate jets for personal travel too. That expense increased even more dramatically to $205K from a measly $34K last year. We’re guessing that probably has more to do with the way the company calculates the expense since $34K seems unusually small.

I’ll be at the Value Investing Congress today and tomorrow, and hope to see some of you there.

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