Perfect timing?

August 3, 2006

Call us crazy, but it doesn’t seem like the best timing to announce generous salary increases for top management on the very same day that the company reports lower earnings. But that’s exactly what PlanetOut (LGBT) did yesterday in two separate 8-Ks. Throw in the fact that the stock is down around 30% since April and you really have to start wondering.

In this 8-K, the company noted that CFO Daniel Miller and CTO Peter Kretzman would each receive nearly 20% raises. But COO Jeffrey Soukup, who picked up the additional title of president earlier this summer, did even better: nearly 30%. Plus, he gets a $280K retention bonus, provided he sticks around through the end of this year. There’s also 40,000 in restricted stock, including 10,000 shares that vest on Jan. 1. Finally, Soukup’s new contract has something perhaps even more important, given Planet Out’s trendy Embarcadero location: garage parkiing paid for by the company.

UPDATE: With the stock down nearly 25% today, it looks like the timing was even worse than we thought when we first posted this item.

Leave a Reply

You must be logged in to post a comment.