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!

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