Let’s Send Kevin Davis a Metrocard

With its stock down 80 percent from the first tick of its IPO last year, don’t think that the board of MF Global Ltd (MF) is snoring gently at the wheel. Facing a certain uncertainty in its outlook, caused not least of all by the urgent need to close rogue wheat trading loopholes, the board has really stuck it to chief executive officer Kevin R. Davis, who managed to run up $105,800 in transportation expenses in fiscal 2008.

To the proxy:

 

Mr. Davis made use of a designated third-party private car service primarily for business and commuting purposes. The total cost of these services not otherwise reimbursed by Mr. Davis for fiscal 2008 was $95,000. Although we make transportation services available to enhance the security and efficient travel of our chief executive officer, SEC rules require that costs of commuting and other uses not directly and integrally related to our business be disclosed as compensation to the executive. Because we do not track use of these services on the basis contemplated by these SEC rules, we have reported the full amount of our estimate of these services for Mr. Davis...

 

But...but...but:

 

...Effective for fiscal 2009, the Compensation Committee approved an annual car and driver allowance of $75,000 for Mr. Davis...

 

To help fill the $20,000—or $30,800, depending on which 2008 number you want to go with—gap, NakedShorts will send Davis a $23 Metrocard (our cost $20), and would encourage readers to do likewise. Don’t bother tossing in a Starbucks card: word is that Davis already has a cappuccino machine.

MF Global Ltd DEF 14A
Definitive Proxy Statement
See: Other benefits and perquisites (Page 31) and
Additional Detail Regarding All Other Compensation (Page 40)

Disclosure: NakedShorts’ Falling Anvil portfolio remains long MF.

Comments

[mf101]

Greg. Come on. It ain't goin down any further. Pick at another one. You're abuse of your journalistic forum to further short plays hurts good companies and middle class investors.

[ozzi]

mf101: Are you going to admit you were wrong? You are abusing your anonymity here. My hope is that we are close to capitulation if only because so many stocks are so well priced.

[mf101]

wrong? about the bottom, sure. knew it wasn't, just tired of the manipulation. about this companies business model and ability to succeed in volitale down turning markets? absolutely not. about kevin davis - who cares. its a company, a machine, not one disillusioned individual. i'll tell you what - days are numbered for people making a living off of strictly shorts, the writings on the wall and you all know it. betting against the success of companies is bad for the economy and country. balance? yeah right, failure doesn't need rumors and price driving to reach fruition. its greed at its worst and its become a feeding frenzy at the expensive of the hardworking american retiree that built the wealth so many shorts and hedgies now enjoy. as far as anonimity, i'd love to meet you. i have nothing to hide or fear - can you say the same. if you think the subpeonas are flying now, wait till the dems are in the white house.

[Greg Newton]

Apart from "abusing [his] anonymity" as noted by commenter ozzi above, mf101 has issues with his basic reading skills. To whit(less):

Disclosure: NakedShorts’ Falling Anvil portfolio remains long MF.

NakedShorts was long MF when he wrote the article, and thanks to last week's humblage (see Tuesday, Jul. 18), is now even more long. Go figguh. His position in the company should not be confused with his position on its over-compensated, under-performing Chief Nabob.

Greg Newton d/b/a NakedShorts
(for it is I)
Jul. 20 2008