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Posted December 5, 2011
Sign in to connect with your friends on CitybizlistAn investigation of Washington D.C.-headquartered Cogent Communications (Nasda:CCOI) over possible executive excessive compensation is being conducted, according to the Shareholders Foundation, a self-described loss-prevention, settlement recovery, and portfolio monitoring service.
A November press release indicates that Dallas-based Goldfarb Branham is performing the investigation.
The following announcement is from Shareholder Foundation's site from November 23:
San Diego, Nov. 23, 2011 (Shareholders Foundation) -- An investigation on behalf of investors of Cogent Communications Group, Inc. (NASDAQ:CCOI) concerning whether certain senior officers and executives breached their fiduciary duties related to potential excessive compensation that was awarded was announced.
The investigation by a law firm focuses on whether certain officers and directors of Cogent Communications Group, Inc. violated shareholder protection laws by paying executives excessive compensation.
Cogent Communications Group's shareholders recently expressed their disdain for executive pay packages by voting "no" on Cogent Communications Group's say on pay provision. At its April 27 annual meeting 61% of the shareholder voted against the Company's compensation plan.
Despite that NASDAQ:CCOI shares traded in 2008 as high as $22.32 per share and during 2007 as high as$32.85 per share and fell to recently slightly above $12.50 per share, Cogent Communications Group's CEO earned a total compensation in2010 of $3.99million, including a time-vested stock award, which was worth approximately $3.7 million.
The following announcement is from Shareholder Foundation's site from June 7:
An investigation on behalf of current long term investors in shares of Cogent Communications Group, Inc. (NASDAQ:CCOI) concerning possible breaches of fiduciary duties related to potential excessive compensation that was awarded to certain senior officers and executives at Cogent Communications Group was announced.
The investigation by a law firm focuses on whether the directors and officers of Cogent Communications Group Inc. harmed the company by breaching their fiduciary duties to shareholders. In particular the investigation on behalf of current long term investors in Cogent Communications Group (CCOI) focuses on possible shareholder claims that certain of Cogent Communications Group's senior officers and executive were unjustly enriched through their receipt of unwarranted, excessive or unearned compensation in past years.
Cogent Communications Group's CEO earned a total compensation in 2010 of $3.99million, including a time-vested stock award, which was worth approximately $3.7 million.
However, Cogent Communications Group's shareholders recently expressed their disdain for executive pay packages by voting "no" on Cogent Communications Group's say on pay provision. Cogent Communications Group Inc. received only 39% support for its pay practices at its April 27 annual meeting, according to a company filing.
The investigation concerns possible claims that the prior compensation awarded at Cogent Communications Group is improper based upon its current operating condition.
Cogent Communications Group's 12 months Total Revenue increased from $185.66 million in 2007 to $263.42 million in 2010. Cogent Communications Group, Inc. reported a Net Loss of $35.36 million in 07, $15.22 million in 08, and $17.15million in 09. For 2010 Cogent Communications Group, Inc. reported a small Net Income of $0.67million. For the first quarter in 2011 Cogent Communications Group, Inc. reported quarterly Revenue of $73.46 million with a quarterly Net Loss of $0.28million.
Shares of Cogent Communications Group, Inc. increased from as low as $3.97 per share in November 08 to slightly above $15 in May 2011. However NASDAQ CCOI stock traded during 2008 as high as $22.32 per share and during 2007 as high as$32.85 per share. Leaving investors who purchased during the high of 2007 with a more than 50% loss.
The investigation also seeks to determine whether certain senior officers and executives at Cogent Communications Group were awarded salaries, bonuses, stock options and other forms of long-term, ?incentive' or retirement compensation that were excessive or unwarranted based on the Cogent Communications Group's performance as compared to what senior officers and executives at comparable companies were making and/or results that were fraudulent, misleading or not long-lasting.
Finally the investigation focuses also on possible shareholder claims that would allow Cogent Communications Group (NASDAQ: CCOI) stockholders to more efficiently influence or control future compensation decisions at Cogent Communications Group Inc.
Shareholders Foundation Can Be Accessed Here:
http://tinyurl.com/ckq6cy3
http://tinyurl.com/7zqyqr7
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