gnulaw (58.02)

[Update2] Geeknet (GKNT) President, CEO of Media and President, CEO ThinkGeek Awarded $4M in Bonuses* Amidst Continuing Patterns of Continuing Losses and Not Tied to Performance. On Insider versus Non-insider Shareholder Value Maximization.

December 28, 2010 – Comments (0) | RELATED TICKERS: GKNT , BBY , AMZN

Geeknet (GKNT) President, CEO of Media and President, CEO ThinkGeek awarded $4M* in bonuses amidst consistent patterns of continuing losses, eroding eCommerce gross margins, and not tied to performance.  What is Kenneth Langone thinking? What is happening to the non-insider shareholders' company?

* Based on the closing price of Geeknet (GKNT) on December 14, 2010 ($25.89). Form 4 Scott Collison filed December 16, 2010 (78,125 shares). Form 4 Caroline Offutt filed December 16, 2010 (78,125 shares).  These awards were made while Geeknet is sustaining continuing losses and cash drains while Thinkgeek's gross margins have further eroded from 15.74% for the nine-months ended September 30, 2009 to 12.03% for the nine-months ended September 30, 2010. Source: Geeknet SEC 10-Q for the period ended September 30, 2010. 

Note: Collison's and Offutt's titles on said SEC FORM 4's are both designated as "President, CEO" of their respective divisions. Pending separate spinoffs/IPO's? (Also see February 06, 2005 article below, The Times, London - does this mindset explain said incomprehensible and alleged negligently conceived bonuses?). 

Three more questions:

1. Why hasn't Geeknet's website geek.net been updated since August 2010?  

2. Does Geeknet have any analysts following them?  Why is that?

3. What effect will the TK-421 negative reviews (see below reference) have on ThinkGeek's Q4 ending December 31 2010 margins? Will they be material? 

References:

(December 26, 2010) Goodbye, GKNT

(December 17, 2010)  Multi-million-dollar bonuses, Yahoo! Finance Message Board, Geeknet, Inc.

(December 16, 2010)   Geeknet (GKNT) Names GE Healthcare CFO, Kathryn McCarthy, as GKNT CFO Effective January 4th, 2011

(December 15, 2010) [Update1] ThinkGeek (NASDAQ:GKNT) Initiates a 20% Discount on TK-421 on the Heels of engadget, Chip Chick, c|net...Unanimous Thumbs Down Review for Their Highly Anticipated iPhone Keyboard...Wikileaks and SourceForge?

(December 03, 2010) [Update5] Geeknet Disrupt - Can Langone's team turn Feedery into the Next Generation Social Media News Site/Engine? 33 Months Ago 13D Hedge Fund Shareholder Put Pressure On Geeknet (GKNT) Board Demanding to Unlock Value. Where is Geeknet today?

(November 22, 2010)  [Update2] There's no "Team" in "I". ThinkGeek (GKNTD) President Files 8-K Minutes Before Market Close [on a Friday] - Sticking it to Non-insider Shareholders and a No Confidence Vote in President, Media/Media Division.

(November 18, 2010)  [UPDATE1] Geeknet (GKNTD) Names Scott [Ohloh] Collison as President and GM, Media and Announces Move from Silicon Valley to ThinkGeek's HQ, Virginia, CFO to Resign.

(November 01, 2010) [Update1] Geeknet Divests ohloh. The Minds Behind Ohloh.net Failed to Turn Geeknet GKNTs World Class Open Source Assets Into Something Extraordinary. What's Next for SourceForge.net and Slashdot.org

(October 16, 2010)  [Update2] Geeknet (GKNT) Announces Sale of Ohloh.net to Black Duck Software. What's Next for SourceForge.net and Slashdot.org? 

(February 06, 2005) Kenneth Langone on Bonuses: The Times, London. Grasso denies any excess in $100m pay row. (Unedited version, SourceWatch).