Wednesday, February 08, 2006

Donkey musings - Don't blame Bob

Rambus CFO, Robert Eulau, announced that he had resigned effective March 2, 2006 and Ramboids commenced piling on. Mr. Eulau's popularity apparently rivals "W's" and a reader of the Rambus boards might wonder if global warming was Eulau's fault.

Is Rambus getting the message? Ramboids are frustrated.

The public relations department is muted, inept or maybe both. Ramboid emails are ignored. Not even a form "Thank you for your email. We are unable to respond to your question at this time." Is it because of SEC regulations or "we are in litigation" concerns? Who knows? Rambus PR doesn't respond, period.

The executive compensation is obscene. Yes, you read correctly - executive compensation is obscene. No, I don't believe that executives should be limited to a "living wage." Yes, I am aware that "good executives" must be paid well or they will leave. But let's get serious! Pay a good, even high, salary and award a nice healthy annual bonus. Take a second look at the option package. No, take a third look.

Rambus optionees are gluttonous. They know no boundary of decency. They reaped a windfall, compliments of an imprudent board of directors and a judge in Virginia. Years back, Rambus stock plummeted thanks to Judge Payne and the board of directors passed out options like invitations to a frat party. While many (most?) non-insider shareholders are still under water, insiders have exercised options and effectively erased a quarters worth of earnings in 2006 alone. The facts speak for themselves - enough said.

How frustrated are the Ramboids? This is from Donkey's mailbag:

Are we really supposed to accept that this twinkie loving, mono-syllabic CFO deserved 21 million in compensation over a 2 year period? Can anyone convince me that this is justified so that I can stop sitting here feeling like I've just been molested by Pillsbury doughboy?

I am truly sorry. I can't help you on this one. The board of directors determines compensation. It is tough blaming Bob for taking what is given him, particularly when he is leaving.

Rambus is still run like a mom-&-pop operation. The media by and large is unfocused and clueless as to the Rambus story. When, yes "when" Judge Whyte hands Rambus the pot-of-gold, the lights will be bright and Rambus will be forced to grow up.


Anonymous said...
This comment has been removed by a blog administrator.
Empiricum said...

That sounds like KAHLUA.
Does he drink at work?

Seriously, BRAVO, Any Donkey !

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