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April 11, 2005

If awards were being handed out in the better late than never category, Audiovox (VOXXE) which received a delisting notice from Nasdaq last month for failing to get its 10-K in on time, would be a front-runner. In the K it finally filed on March 31, the company noted that two sons of two top executives — CEO John Shalam and CFO Charles Stoehr — have been on Audiovox’s payroll for ten and nine years respectively, even though the company chose 2005 to disclose this for the first time. Granted, neither of the two sons are officers, but it’s pretty hard to argue that they’re not related parties. David Shalam made $145K last year as a vp in charge of mobile video, down sharply from the $219K he made in 2002, according to the proxy. But then again, who knows what he made during 2000 or 2001, since the proxy only covers the past three years? Given some of the other questionable transactions at the company, including one noted in October in this article by Gretchen Morgenson at the Times, it kind of makes one wonder about what else investors have yet to hear about.

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