Consider the current BODs for Nuvo. What do they bring to the table? Are they experienced in the pharmaceutical industry? Are they high profile and successful business men with a track record? Since being elected is the company better or worse off, significantly worse off, or tethering on the end? They have approved all major strategies, approved the Zars deal, set performance guidelines, deemed management as being extremely successful in meeting their performance objectives, approved outrageous compensation for meeting these objectives and yet how has the company fared? The Board has issued a document that over some 30 to 40 pages lists all the risks the company faces - it reads to me like a laundry list for reasons why the company has been unsuccessful yet excludes the most important; the risk of bad management!
Now sit back and consider whether Nuvo would be better off with someone on the Board that understands the industry (including the co-CEOs) folks that have demonstrated business acumen rather than been associated with failed enterprises, and most importantly do things when they say they will and take responsibility for their actions.
If you want an example how how not to execute a strategy look no farther than the RS which came to pass almost 4 years after it was first proposed without a US stock listing to go with it. For four years retail shareholders stayed away and since there were no institutional shareholders ready to jump in the post RS share price has fallen a further (38)% from the already record lows. In my opinion the timing couldn't have been any worse!
A new Board of Directors will not rely on a consulting report exclusively to justify compensation. How many companies in that report have a market capitalization under $20 million? How many have co-CEOs? How many borrowed money at 15% interest rate and then used up most of that money to pay out two years worth of bonuses?
A new Board of Directors will treat shareholders as owners, will provide appropriate guidance and transparency, will set appropriate compensation for the responsibilities and caliber of management and will not pay out bonuses for failure.