Not so cool…

May 23, 2006

Last summer, I wrote about Majesco Entertainment (COOL), after the gaming company’s CEO, Carl Yankowski — a former Reebok and Palm exec who was supposed to turn things around — wound up running for the exits after less than a year at the helm. At the time, the stock was trading at around $4 a share, down from $23 when Yankowski took over.

Well, things haven’t improved much at Majesco. The stock is now trading at around $1.38 and no longer meets Nasdaq listing requirements. Meanwhile, the proxy that the company filed yesterday continues to show some disturbing things like a $2.3 million printing deal with a company owned by Chairman and interim CEO Morris Sutton’s brother. There’s also a consulting contract with a new board member that paid him nearly $200K last year. It’s not clear from the filing whether Keith Harrison will continue to consult now that he’s a director.

There was also a $266K bonus — nearly a year’s worth of salary — paid to President Jesse Sutton in 2005 (yes, he’s related to Morris) for the company’s performance in 2004 before the stock tanked. Finally, director’s fees increased nearly three-fold to $40K a year as of Dec. 1, 2005, up from $15K.

Had enough yet?

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