OM Group, Inc. (NYSE:OMG) Investor Alert: Investigation over Potential Wrongdoing by Directors
An investigation on behalf of investors in NYSE:OMG shares over potential breaches of fiduciary duties by certain directors of OM Group, Inc. was announced and current long-term NYSE:OMG stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWire) -- 05/22/2012 --Certain officers and directors of OM Group, Inc. are currently under investigation concerning whether they breached their fiduciary duties by paying certain top officials at OM Group, Inc. excessive compensation.
Investors who are current long-term stockholders in OM Group, Inc. (NYSE:OMG) shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm focuses on whether certain directors and officers of OM Group, Inc. (NYSE:OMG) harmed the company by agreeing to pay certain of OM Group’ senior officers and executives excessive compensation in past years.
OM Group’s annual Revenue rose from $871.67million in 2009 to $1.51billion in 2011 and its Net Loss of $17.86million for 2009 turned into a Net Income of $37.90million in 2011.
The compensation of certain top executives at OM Group, Inc. increased substantially from 2009 to 2011. For instance, the Chairman and CEO’s pay rose from over $1.99million in 2009 to over $5.01million in 2011 and the CFO’s compensation increased from over $500,000 in 2009 to over $1.36million in 2011.
OM Group’s annual Revenue in 2011 was below its annual Revenue in 2008, $1.51billion compared to $1.73billion and its Net income in 2008 was also substantially higher than in 2011, $135million compared to $37.90million. Furthermore, OM Group’s annual Revenue grew from 2010 to 2011, but its Net Income declined from $83.37million to $37.96million.
However, despite better financial results in 2008 than in 2011 the compensation of certain executives at OM Group, Inc. is higher in 2011 than it was in 2008. For instance, the CEO’s compensation in 2008 was over $4.4million and in 2011 over $5million and the CFO’s compensation in 2008 was at over $1.26million in 2008 and over $1.3million in 2011.
Shares of OM Group, Inc. (NYSE:OMG) increased from as low as $14.35 in March 2009 to as high as $40.85 in July 2011. However, NYSE:OMG shares traded as high as over $60 in 2008 and fell since July 2011 to as low as $20.16 in early December 2011.
At the 2012 Annual Meeting of Stockholders of OM Group, Inc. on Tuesday, May 8, 2012 the majority of investors voted against company’s compensation plan.
On May 21, 2012, NYSE:OM shares closed at $18.70 per share, less than half its current 52weekHigh of $41.88 per share.
Those who are current long-term stockholders OM Group, Inc. (NYSE:OMG) shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego
Media Relations Contact
Shareholders Foundation, Inc.
View this press release online at: http://rwire.com/143833