Excellent Exit: LSG’s Sethre to Receive $350K for Next 12 Months
The “G” in LSG, should be changed to “Golden” as in Golden Parachute.
According to the 8K Report–released at 8pm Friday–Lighting Science Group’s former President, Jennifer Sethre is entitled to her base pay of $350,000 until 17 JUL 2015. In addition, she’ll receive $11,000 for private school tuition. Further, she is entitled to up to $3900 per month for rental costs in Florida for up to two years, which works out to be $46,800 per year. Not bad considering she was with LSG for only a little over 4 months and the OTC stock price declined about 30% during her tenure. On February 14, 2014, LSG filed an 8-K reporting the appointment of Sethre as President of the Company. On March 28, 2014, the Company entered into an employment agreement with Sethre, made effective as of March 1, 2014.
Recall also that last week EdisonReport reported that the former CFO was entitled to $320K salary through 2015, plus a $100K bonus. There has been speculation that LSG are running out of money but they have spent a small fortune in severance packages in the last few years.
The last financial report shows a net loss of $40 Million for the quarter ended 31 MAR 2014. This was the quarter in which Ms. Sethre started her employment and likely would have had little opportunity to meaningfully impact those numbers. Given her resignation, coupled with that of the CFO, it will be interesting to see the income for the quarter ended 30 JUN 2014.
Ms. Sethre will resume her role at Pegasus Capital Advisors as an operating partner, a position she held prior to joining Lighting Science Group.