Even The Demons Are Encouraged When Their Chief is “Not Lost in Loss Itself”
Adrian J Cotterill, Editor-in-Chief
Garry McGuire may have been forced to ‘resign’ from RMG Networks late last week but he hasn’t left the company completely empty handed, receiving a rather nice parting gift from RMG Networks (see below) and negotiating a rather interesting change to his non-compete obligations which we doubt anyone else who leaves RMG will ever get.
- In the CONFIDENTIAL SEPARATION AGREEMENT AND GENERAL RELEASE Exhibit 10.2 (it’s available online if you know where to look) he states that Garry received a lump sum payment equal to USD 428,125, a further USD 21,875 in earned and unpaid vacation and 100,000 shares of RMG Networks common stock (that’s approximately USD 665,000 in total).
- The amended separation agreement states that, and we quote “Employee understands and acknowledges that Employee remains bound by the relevant terms of the non-competition and confidentiality provisions of the Employment Agreement, provided, however, the parties agree to modify the Employee’s non-compete obligations by allowing Employee to accept employment with any competitor other than Scala, Inc. and Four Winds Interactive, LLC” .. no doubt RMG Networks saw on the software side of things that Scala and FWi were there biggest competitors but still, allowing your ex-CEO to go and work anywhere in our industry immediately pretty much throws sand in the face of those left behind.
However that’s not all…
Seven / 12th’s of an annual USD 350K base salary, plus the USD 415K bonus he received in Q1 2014 for 2013 (all per his publicly reported employment contract) means that Garry received USD 1.28 Million for his efforts in calendar year 2014.
In the nicest possible way, let’s put that up against the fact that Greg Sachs has lost 80% of his investment, reflected in the stock he owns via his cash outlay … Garry on the other hand has been handsomely rewarded in cash.
The shareholders of this public company (and employees of both Symon and RMG Networks) might feel slightly aggrieved with what the head guy was paid in relation to the results that were produced.
.. and finally, just like the sports stars who continue to get paid hundreds of thousands of pounds a week when they are injured or suspended or NOT PERFORMING, we do wonder who the hell negotiates all of these contracts!
July 25th, 2014 at 15:05 @670
They laid off a bunch of people last week. I was told the CTO was let go too. The idea of moving their offices across town into a less convenient location didn’t help performance. Their new offices only had the advantage of being newer. Who should be unhappy are long time Symon employees who worked many years for a profitable company that was solid and the McQuire mob came in without understanding the culture and not creating a new one.
July 25th, 2014 at 22:38 @985
Could not agree more. This payoff is another slap in the face to the company. It is like McGwire got paid a million dollars to take everybody to dinner and then walking out on the check.
July 28th, 2014 at 21:40 @944
And let the great avalanche of “I told you so…” hindsight wisdom unleash!!
If there was ever a case study to be taught about what it takes to scintillate VCs and Private Equity money, versus what it takes to survive on Wall Street, look no further than the tale of Garry McGuire. The concept of being a public company was an obsession, having nothing to do with what was right or best.
Nobody – and I mean nobody you or I know – can out-hustle Garry McGuire, nor lay on the sizzle with investors or sales clients. But when you get to Wall Street, people stop gawking at the monkey, they stop clapping at the crap magic tricks, and they just want their real money to grow. But what a ride Mr. McGuire has taken us all on!
August 3rd, 2014 at 13:35 @607
He upped his salary a few months ago despite the company tanking. He was playing with house money and lost big. Unfortunately, and it’s hard to believe it was unknowingly on his part, he took people down with him.
August 5th, 2014 at 20:36 @900
Not only did they lay off people, they still have major holes.
Example: Being sued by Regus over MAG Payments. Garry sold 1 Mill deal and the Mag payments are Close to 1 mill within the first year. Makes no sense! especially when the system is not installed yet and running. The Media business is a Joke (you pay out more Mags then Rev).
Human Resources is a major issue with this company, they allow abuse and physiological harassment by upper/mid management. The problem with this company is not the New RMG People but the old Symon guard that still control the day to day duties.
August 7th, 2014 at 03:44 @197
“we do wonder who the hell negotiates all of these contracts!”
Well said, and definitely worth pondering.