Bonum Certa Men Certa

Some Interesting Financial Moves by Novell

Well, our interview with Jeremy Allison made front pages on Digg and Slashdot, and I think we made it through the storm without a problem. Over on slashdot, some very interesting things were pointed out by symbolset during the discussion, and I wanted to bring them up here as well.

Previously, I wondered "what is circumventing the spirit of the GPL worth?", pointing to information of a Novell 8-K filing outlining a $350,000 bonus to Novell VP and General Counsel Joseph LaSala for his exceptional contributions. Now, we know what Ron Hovsepian stood to gain from the deal personally.

Hovsepian's Personal Payoff

He received 778,470 shares of stock awarded 12/20/06.

From this page you can see he's historically not a big holder.

778,470 @ $6.20 is $4,826,514. No doubt he was hoping for more presents under his tree. Perhaps there will be more for him after the dust settles. Certainly would have been nice for him if the Street had liked the deal and he got a good bump. Too bad.

It's interesting that seven of ten managers listed here are new to the company in 2006, and almost all are new in the last 18 months.

If I were a stockholder looking at that, and the recent change of course in the company, I might be concerned. The theme is familiar, but I can't remember where I saw it before... Maybe someone else will reply with that answer.

Here, we learn a bit more about the dire financial straits that Novell was in before making this deal, further evidence that they were not in the "position of advantage", as they and others have suggested.

Novell Troubles

Also, the company is having some trouble filing reports with the SEC, presumably because of options grants.

Just days before this deal was announced they had an interesting 8K report filed.

They owed a ton of cash that was due in 2024, but callable in the event they failed timely filing of reports with the SEC. Apparently that Microsoft money saved their bacon on that one, since immediately after the deal was done it was reported the money had already been paid out to debtors. Their SEC reports should make interesting reading for some time to come.

Being paranoid, though, I wonder if their accountants or the debtor or both aren't beholden to Microsoft's business interests in some way. That would be really scary.

And, Novell (like just about every other tech company) has questions regarding Options grants in the past, which could lead to their delisting.

Sonsini Got Questionable Options

I don't know why we don't hear more about things like this:

FTA:

The fact that Novell had guidelines for option grants -- and that directors strayed from them -- is particularly disturbing, said lawyers and academics.

"It should be an issue of shareholder concern whenever a board changes its own compensation," said Kirk Hanson, the director of the Markkula Center for Applied Ethics at Santa Clara University and a former Stanford University business professor.

While directors are generally permitted to award themselves whatever they want as long as it is publicly disclosed, Hanson said basic principles of corporate governance hold that they should avoid giving themselves pieces of the company just because they can.

And then there's the spectre of delisting.

Recent Techrights' Posts

Congratulations to Debian Project Leader (DPL) Andreas Tille
It would not be insincere to say that Debian has issues and those issues need to be tackled, eventually
David Graeber, village wives & Debian Outreachy internships
Reprinted with permission from disguised.work
 
Gemini Links 21/04/2024: Minecraft Ruined
Links for the day
Links 20/04/2024: Apple is Censoring China’s App Store for the Communist Party of China
Links for the day
Links 20/04/2024: Accessibility in Gemini and Focus Time
Links for the day
20 April: Hitler's Birthday, Debian Project Leader Election Results
Reprinted with permission from Daniel Pocock
September 11: Axel Beckert (ETH Zurich) attacks American freedoms
Reprinted with permission from Daniel Pocock
20,000 victims of unauthorized Swiss legal insurance scheme
Reprinted with permission from Daniel Pocock
Matthew Garrett, Cambridge & Debian: female colleague was afraid
Reprinted with permission from disguised.work
Neil McGovern & Ruby Central part ways
Reprinted with permission from disguised.work
Links 20/04/2024: Chinese Diplomacy and 'Dangerous New Course on BGP Security'
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, April 19, 2024
IRC logs for Friday, April 19, 2024
The Latest Wave of Microsoft Crime, Bribes, and Fraud
Microsoft is still an evil, highly corrupt company
Links 19/04/2024: Running a V Rising Dedicated Server on GNU/Linux and More Post-"AI" Hype Eulogies
Links for the day
Gemini Links 19/04/2024: Kolibri OS and OpenBSD
Links for the day
[Video] Novell and Microsoft 45 Years Later
what happened in 2006 when Novell's Ron Hovsepian (who had come from IBM) sealed the company's sad fate by taking the advice of Microsoft moles
[Meme] EPO “Technical” Meetings
an institution full of despots who commit or enable illegalities
EPO “Technical” Meetings Are Not Technical Anymore, It's Just Corrupt Officials Destroying the Patent Office, Piecewise (While Breaking the Law to Increase Profits)
Another pillar of the EPO is being knocked down
Red Hat Communicates the World Via Microsoft Proprietary Spyware
Red Hat believes in choice: Microsoft... or Microsoft.
Sven Luther, Lucy Wayland & Debian's toxic culture
Reprinted with permission from disguised.work
Chris Rutter, ARM Ltd IPO, Winchester College & Debian
Reprinted with permission from disguised.work
[Video] Microsoft Got Its Systems Cracked (Breached) Again, This Time by Russia, and It Uses Its Moles in the Press and So-called 'Linux' Foundation to Change the Subject
If they control the narrative (or buy the narrative), they can do anything
Links 19/04/2024: Israel Fires Back at Iran and Many Layoffs in the US
Links for the day
Russell Coker & Debian: September 11 Islamist sympathy
Reprinted with permission from disguised.work
Sven Luther, Thomas Bushnell & Debian's September 11 discussion
Reprinted with permission from disguised.work
G.A.I./Hey Hi (AI) Bubble Bursting With More Mass Layoffs
it's happening already
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, April 18, 2024
IRC logs for Thursday, April 18, 2024