Sunday, January 4, 2015

Stan Bharti in the news yet again ...

Globe-trotting junior mining financier Stan Bharti has been targeted by a shareholder activist in a boardroom battle that could test the limits of compensation at money-losing companies.

Mr. Bharti and a close-knit group of executives and directors have pocketed millions of dollars in consulting fees, bonuses and other payments at a time when a number of companies managed by Forbes & Manhattan have suffered declining financial health and stock performance. Stock prices of resource ventures managed by Forbes & Manhattan have plunged sharply in recent years, prompting some shareholders to question compensation, stock deals and other transactions.
In recent years, Mr. Bharti and his family have hosted lavish investor conferences at exclusive resorts, in Mexico and Brazil, featuring vodka-cooling ice sculptures.
San Francisco activist investor Ryan Morris said Tuesday afternoon that he is launching a proxy battle to replace all seven directors at one of Forbes & Manhattan’s core holdings, Aberdeen International Inc.

His move to replace Aberdeen’s directors marks the third time in two years that compensation and payment practices at a company linked to Mr. Bharti prompted shareholders to push for changes to the board. New directors were appointed at Dacha Strategic Metals Inc. and Longford Energy Inc. in 2012 after proxy battles were launched by Toronto institutional investor Goodwood Inc.
According to regulatory filings, Aberdeen has paid a total of more than $10-million during the past three years in salary, bonuses and other incentives to its executive chairman Mr. Bharti, its executive vice chairman George Faught, and chief executive officer David Stein.

During that time, Aberdeen reported more than $84-million in losses and its stock price tumbled from nearly $1 a share to below 20 cents on the TSX Venture Exchange.

David Stein. Chief Executive Officer, Director
Forbes & Manhattan and Mr. Faught and Mr. Stein are eligible to earn as much as $8-million more under so-called change-of-control clauses in their executive employment contracts. According to Aberdeen’s regulatory filings, change-of-control payments are triggered by such changes as the replacement of a majority of directors.
George Fraught
It never ends for Mr. Bharti and the track record of screwing the public over major extends to many years and shows NO SIGN whatever of coming to an end. Betting on a jockey this damn grotesque and a body probably gets what they deserve.