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 ** ******"

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

****'* *** ****** **** Robin ******-**** [**** ** longer *********], ******** ********* at **** ***** *******, forwarded ** ** ** an ********:

"**** *** **** ****** 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

Verkada Lead Investor’s Fundamental Errors on Feb 05, 2020
The man behind Verkada’s stunning $1.6 billion valuation, Aydin Senkut, has been talking up many fundamental errors he made in the...
Verkada Salesman Falsely Alleges Competitor Bankruptcy on Jan 02, 2020
A Verkada salesman falsely told a large end-user that the user's VMS provider faced bankruptcy. Verkada management acknowledged the error to...
Resideo CEO To Step Down on Dec 03, 2019
Resideo's CEO, Mike Nefkins, is stepping down, just 18 months after being brought in to lead the now plagued spin-out. Inside this note, we...
How To Quickly Research An Unknown Company on Jul 23, 2019
There are hundreds of companies in the physical security markets, ranging from a flood of new startups to small companies that may or may not be...
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...
OpenALPR Doubles Prices on Jun 06, 2019
There is no 'race to the bottom' in cloud / AI video surveillance. In May, Verkada increased their prices. Now, OpenALPR is doing the same with a...
Knightscope Adds Just 2 Total Customers In Past Year, Yet Raising Money at $300 Million Valuation on May 02, 2019
This is no longer funny. While Knightscope has laughed it up promoting robot selfies, joking about a 'suicidal robot', the man who attacked a...
Verkada Gets Half Billion Dollar Valuation on Apr 26, 2019
Last week, when we profiled Verkada (The Fastest Growing Video Surveillance Sales Organization Ever - Verkada), we predicted they would raise $40...
The Fastest Growing Video Surveillance Sales Organization Ever - Verkada on Apr 17, 2019
Verkada has the fastest growing video surveillance sales organization ever. In less than 2 years, they already have more salespeople in the US...
Failed Integrator Rollup, Securadyne Sells to Guard Giant Allied on Apr 10, 2019
One of the most ambitious integrator rollups of the decade has reached its conclusion—selling to a mega guard company. Allied Universal has...

Most Recent Industry Reports

Pivot3 Mass Layoffs on Mar 27, 2020
Pivot3 has conducted mass layoffs, the culmination of grand hopes, a quarter of a billion dollars in VC funding, and multiple failures to gain...
Athena CEO Criticizes 'Deplorable' 'Nitpicking', IPVM Refutes on Mar 27, 2020
Athena Security's CEO Lisa Falzone has strongly objected to IPVM's reporting on Athena, calling it 'deplorable' and repeatedly criticizing IPVM's...
Hikvision Admits Sanctions Harming Its Financial Performance on Mar 27, 2020
While Hikvision initially downplayed being sanctioned for human rights abuses, the company is now admitting a significant impact in a new PRC...
New Axis M30 Cameras Tested on Mar 26, 2020
Axis has released a new generation of, for them, relatively low cost M30 series cameras, claiming to deliver "sharp video quality even in poor...
Coronavirus Shuts Down ADT Door Knockers on Mar 26, 2020
Coronavirus has another victim - this time, alarm giant ADT has stopped all door to door sales. Door knockers are a critical but controversial...
Access Control Course Spring 2020 - Save $50 Last Day on Mar 26, 2020
Register Now - Spring 2020 Access Control Course. Today, March 26th is the last day to save $50. IPVM offers the most comprehensive access...
Convergint Coronavirus Cuts on Mar 25, 2020
One of the world's largest security integrators, Convergint, has made a major move to handle the impact of coronavirus, with cuts across the...
VSaaS 101 on Mar 25, 2020
Video Surveillance as a Service (VSaaS) is the common industry term for cloud video. But what does it mean? How does it all work? Inside this...
TVT / InVid Facial Recognition Tested on Mar 25, 2020
Facial recognition is frequently sold for thousands of dollars per channel but some China manufacturers are offering full facial recognition...
IPVM Launches On-Demand Courses on Mar 24, 2020
For nearly a decade, IPVM has been a leader in online live courses. Now, we have added on-demand versions for all courses. The same course...