Avigilon Analyst's Theory On Ex-Execs: "Road to Riches"

By: John Honovich, Published on Jun 23, 2014

Avigilon's stock tumbled after their CFO departed, a culmination of 4 executives out in half a year. Many investors and financial press commentators cited 'management turnover' as a concern.

Now, an Avigilon analyst has an intriguing new theory about why these executives were leaving and what Avigilon's CEO prefers.

"Road to Riches"

********'* ***** ******* ********** *** ********, * *********** ** 4 ********** *** ** half * ****. **** investors *** ********* ***** commentators ***** '********** ********' as * *******.

***, ** ******** ******* has ** ********** *** theory ***** *** ***** executives **** ******* *** what ********'* *** *******.

"Road ** ******"

[***************]

****'* *** ****** ********* ******-****, ******** ********* ** CIBC ***** *******, ********* to ** ** ** investor:

"**** *** **** ****** joined *** ****, ******* the ******* *** *** employees ******* ******* **** would *** $** ***** prices ** *******. ***road ** ****** **** ** ******* *** **** **** **** **** ** * ******** ** ***** ******* **** ******** (despite Vancouver living costs!). I believe this is the primary reason for the head of marketing (Keith Marrett), director of hardware development (Mike Neufield), HDSM System Architect, VP of engineering and perhaps even the previous COO leaving. All ** ***** **** **** ** ** *** ***. When speaking ** **** [***] * *** *** feeling **** ** ***more ********** ** *** **** *****, ****** *** ***** ** ********** ** *** ****** ****** **** **** ** ********* (who would have guessed!) and that an increasing number of these senior execs will come out of Dallas." [Emphasis Added IPVM]

** *** ***** ****, when ****** ***** ** no *** ***, ** is ********** ******* **** have **** ****** *** / *****.

******-**** *****:

"**** ****** ****** ** *** start ** **** ** had * ****** ** $180K **** ******* **** were ********* ** *** share ***** *** ***** the *** *** ******** price ** $*.**.

** * ***** ***** of $** ** *** time *** *** *** posted ** ******** ******** *******, *** vested ***** ******* (*** last *** ** ***** would **** ****** ** April ****), ******** ******, salary *** ******* ***** have ******* ***** ** $3 ******* *****."

**** ****** ****** *** ******** from ********* ******** ******** / ************** ** ********* about *** ****** *********'* character.

Sales ***** ****

*** ***** ***** ****** Avigilon ** *** ***** team (*.*., ********* ******) ** ********** *******. This *** ****** ***** when ***** ** ***** ******** to ***(*.*., **** *** ********* based **** ** ** Operations '****' ** *** pushed ***).

**** **** ** *********** to *** ** ******* the **** ******** ***** organization's ******* *** ******* will ***** **** ** the **** ** *** organization (*** ********* **** ***** **** ethic, ****** *** *****).

CEO ******* **** *********

**** *** **** *****, Avigilon's *** *** **** flying *** ** **** with ******* ********* *** analysts. *** ***** ***** indicates **** ** ** doing * **** *** of ********** ****. ***** bottoming *** ***** $** per *****, *** ***** price *** ********* ** $23+. ****** **** ** not *** *** *** back ** *** $** level ****** *** *** exit, ** *** ********* significantly.

******* ** *** **** theory ***** *** ******** execs ** **** (** are *********), **** ****** to ******** ******** ****** its ************ ******** ***** organization, *** *** ********** delivered *** ******* ****** powering ***** ***** *********, but **** *** ** charged **** *** **** challenging **** ** ******* the ****** *******.

Comments (12)

Sales force is responsible for the short term gain, building on the foundation of Engineering. Engineering is where a company's real longevity lies. How does Avigilon seem to be doing on that front?

Avigilon's products are strong and that is certainly an output of the engineering team (e.g., one of the favorite ip cameras, VMS and analytics).

Now what happens going forward, after the turnover / changes, I do not know. But they certainly have a strong foundation in place.

On the other hand, when people leave to no new job, it is frequently because they have been forced out / fired.

On both hands, as an exec's wealth rises to the point they can cash-out, they become less motivated to put-out (the effort), and will often get pushed-out. It's not really an either/or the way you frame it...

Also most top Exec's are expert wall-readers (and ship-jumpers), and although they sometimes can't prevent being pushed out, they usually know to switch-tracks before they reach the end-of-the-line. But even if they don't see it coming, these people are generally employable folk (although the hiring proccess moves at a snails pace for Execs) and if after a year of downtime they are still not gainfully employed, then there's a good chance thats the way they want it...

Finally, sooner or later, you would expect a bitter Exec to admit to the palace coup, if that was the case...

For sake of argument, let's assume the exited CFO wanted to cash out, why did he do it right before the financials were announced?

He didn't realize that this would spook the market? He timed it on purpose to hurt them? And then Avigilon's CEO shielded him by claiming he was sick?

There's just a lot of improbable points that need to come together for the CFO and all these other execs quitting just to cash out.

I agree about the CFO as I've stated before, my point is if all these people don't get new jobs ever, they probably didn't need them. On the other hand if they are all working within 6 months and at a job of equal or lesser stature, then the cash out theory is a bust...

They probably didn't need new jobs?

"close to $3 million gross" earned over a 2+ year period is not exactly f-u money, especially after taxes, etc.

I could understand if you were talking tens of millions, but that is not the case here. And the CFO has only been out a little over a month.

Plus, why would he jump from Avigilon if he really believed the company's story that they were heading to $500 million revenue in just 2 years? That would invariably mean lots more stock options in the money for millions more.

And, by the way, I thought he was sick. Now, we are debating how greedy he is?

If this is a spin job by Avigilon, kudos to them for a well played effort.

Damn, your right! I didn't assess the three million number correctly, processing it only as 'sh#tload'...

Whose hoarding the other 997 million then? :)

This is sounding more and more like Canada-company-morphs-to-US-badass (or at least US attitude). See Entrust, Nortel, Certicom, Blackberry, others. Complete with weird stock transaction deals we find out about late in the story.

All your company are belong to US.

Here's another analyst who supports the greedy ex-execs theory. Again, this would be more convincing if (1) they really made a ton of money (they didn't) and (2) Avigilon didn't claim the CFO was sick at first.

So much for that theory, Brad Is Back! Apparently Brad caught a 'second wind' and made a speedy recovery back in JUNE:

I'm glad he's feeling better!

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports on Sales

Anyvision Aims For 2022 Revenue of $1 Billion on Jul 17, 2019
Only 3 video surveillance manufacturers do a billion dollars or more in annual revenue - Hikvision, Dahua, and Axis. Now, Anyvision plans to join...
Avigilon President Henderson Is Out on Jul 09, 2019
Avigilon's President and COO James Henderson is out, abruptly, after a remarkable ascension over the past 8 years, Motorola VP Jack Molloy has...
Bosch Integrating Sony Video Security Sales And Marketing Team on Jul 03, 2019
What is the future of Sony in video surveillance? In 2016, Bosch and Sony announced an atypical 'partnership'. Now, Bosch tells IPVM that they...
RaySharp Revealed - Major China OEM For Western Consumer Video Surveillance on Jul 02, 2019
RaySharp is mostly unknown, even among people in the video surveillance industry, though it is a major supplier of OEM surveillance equipment such...
2019 Mid-Year Video Surveillance Guide on Jul 01, 2019
IPVM's new 400+ page Mid-Year Industry Guide brings all of these issues and events together in a single resource to read and review. It can be...
Ivideon Russian VSaaS Profile on Jun 27, 2019
Ivideon was an early VSaaS entrant, initially focusing on the consumer market, claiming massive growth to IPVM in 2014. We spoke to Ivideon, to...
Hikvision USA Giving Free Cameras In Biggest Flash Sale on Jun 26, 2019
Hikvision redefined sales promotions in the US video surveillance market, starting at the end of 2015, with across the board discounts.  Now,...
Directory of 59 Video Surveillance Startups on Jun 25, 2019
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly known. 2019...
Genetec Beats Milestone For IHS #1 on Jun 21, 2019
For years, Milestone has touted that they are the #1 VMS. Now, Genetec has beaten them in IHS rankings. But what is this? Even other manufacturers...
Startup Vaion Launching End-to-End AI Solution Backed with $20 Million Funding on Jun 17, 2019
An EU / USA video surveillance startup, Vaion, founded by ex-Cisco Senior Directors is launching an end-to-end VSaaS platform with $20 million in...

Most Recent Industry Reports

HD Analog vs IP Guide on Jul 16, 2019
For years, HD resolution and single cable signal/power were IP camera advantages, with analog cameras limited to much lower resolution and...
How To Troubleshoot Wiegand Reader Problems - Inverted Wiring on Jul 16, 2019
Wiegand is the dominant method of connecting access readers, but problems can arise for installers. In fact, one of the most difficult reader...
ZeroEyes Gun Detection Startup on Jul 16, 2019
A gun detection video analytics startup, ZeroEyes, is being led by a group of 6 former Navy SEALs, aiming to "save lives" by using AI to assist...
Motorola Acquires Watchguard, Adds to Vigilant And Avigilon on Jul 15, 2019
2 years ago, Motorola had no position nor relevancy to video surveillance. Now, they own major video surveillance, LPR and body camera providers...
Hikvision Global News Reports Directory on Jul 15, 2019
Hikvision has received the most global news reporting of any video surveillance company, ever, ranging from the WSJ, the Financial Times, Reuters,...
Vivotek Trend Micro Cyber Security Camera App Tested on Jul 15, 2019
Vivotek and Trend Micro are claiming five million blocked attacks on IP cameras, with their jointly developed app for Vivotek cameras. This new...
Beware African 50,000 IP Camera Contract Scam on Jul 12, 2019
A “Nigerian Prince” scam for the video surveillance market is going around. You, or at least we, could be lucky enough to be the single bidder for...
Axis ARTPEC-7 P1375-E Camera Tested on Jul 12, 2019
Axis claims the new P1375-E box camera with ARTPEC-7 chip delivers "clear, sharp images in any lighting condition." But how well does it do? We...
Last Chance - Camera Course Summer 2019 on Jul 11, 2019
Last day to register is Thursday, July 11, 2019. This is the only independent surveillance camera course, based on in-depth product and technology...
Nortek Blue Pass Mobile Access Reader Tested on Jul 11, 2019
Nortek claims BluePass mobile readers are a 'more secure and easy to use approach to access', but our testing uncovered security problems and...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact