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Jim Letourneau's Blog

Investing, Technology, Travel, Geology, Music, Golf. I think that covers it.

Can You Say Entitlement?

One of the casualties of the Baja Mining (BAJ.TO)  battle between management and the activist Mount Kellet Capital Management LP was former Corporate Secretary, Kendra Low. Former President and CEO, John Greenslade, is Kendra Low's father and much was made of her compensation by Mount Kellet and maybe she was a bit young to be pushing the long tail of Corporate Secretary compensation. Now she's having to sue her former employer.

She complains that the company wrongfully dismissed her from her $250,000-per-year job and that it defamed her by saying she was underqualified and overpaid. She seeks $375,000 in severance pay plus damages for defamation. (source)

As John Fogerty says "Some folks are born silver spoon in hand". Interestingly enough, John Greenslade is President and CEO of Catalyst Copper (CCY.V). If you check out their management, you might notice a pattern.

I'm all for nepotism, within reason. Public companies have a higher level of responsibility to their shareholders. Obviously, John Greenslade gave the issue much thought and did exactly what he felt like.

Even the big family run empires ensure that their fortunate sons (and daugthers) get some experience outside of the head office. Executives who work at companies with rules against hiring family members circumvent the rules by arranging quid pro quo deals with other executives at similar companies. You hire my kid, I'll hire yours.

The Baja Mining brouhaha has created a very low share price and perhaps opportunity as the project obviously has considerable merit. The company needs money if it is to finish building their Boleo mine in Mexico. The devil will be in the details of how their quest for cash plays out.