Copied from the KC Business Journal http://kansascity.bizjournals.com/kansas...

After the quarter, the board approved a $150,000 bonus for Ross. The action prompted a handful of calls to the company, in part related to the 25 percent salary cut management has taken until the company reaches revenue targets. (STILL HAVEN'T REACHED THE TARGETS - NOT EVEN PROJECTING THEM NEXT QUARTER WITH ALL THE BOOKED SALES, TARGETS WERE $13.75 MILLION PER QTR, or $55 MILLION PER YEAR)

You have to attract and retain top talent if you want top results,” Digital Ally CFO Tom Heckman said. (WHAT GREAT RESULTS - MISSING REVENUE TARGET BY 59%.)


“Now that this issue’s been exposed, I’m not sure it’s ever going to go back to being something shareholders don’t have a lot of interest in,” said Mark Borges, a principal with California-based compensation consultant Compensia Inc. Boards should be prepared to explain their reasoning for pay, Borges said. (SURE DGLY WILL GET RIGHT ON IT)

Last year, Ross got a $425,000 salary and total compensation valued at $1 million, an SEC filing said. - (TOO BAD THE SHAREHOLDERS LOST MILLIONS OF THEIR INVESTMENTS)

“I don’t think there’s anything wrong with having bonus structures for every quarter. I just don’t think they should be paid in too much of a hurry,” he said. (WHEN YOUR CEO IS IN PERSONAL FINANCIAL TROUBLE, HE GETS HIS FRIENDS FROM THE BOARD TO GIVE HIM BONUSES IN A HURRY - THAT'S THE DGLY WAY)

The concept of shareholders voting on executive pay has gained traction during the past couple of years. “If shareholders feel that they’re getting a good return, they’re going to vote in favor of it, even if it’s a high compensation plan,” said Alex Brigham, executive director of the Ethisphere Institute, a New York-based think tank. (THIS HAPPENED LAST YEAR AND THE SHAREHOLDERS VOTED DOWN THE COMPENSATION PACKAGE, THUS STAN'S BUDDIES ON THE BOARD BYPASSED THE SHAREHOLDER"S AND PASSED A BONUS)

Compensation issues also arise when a board is not sufficiently independent and when severance packages are too generous, sources said. (STAN HAS LOADED THE BOARD WITH HIS BUDDIES FROM PAST BUSINESS FAILURES, COMPARE IFNY BOARD)

The bonus issue hasn’t seemed to balloon for Digital Ally, and pay probably will be less scrutinized as earnings return, Ross said. Very large shareholders didn’t mention the bonus, even one Ross saw this month, said Ross, who added that the bonus had been a surprise. (NO?, THEY JUST SOLD THEIR SHARES AND THE STOCK HAS PLUMMENTED TO TODAY'S PRICES)