A lawsuit was filed for current long-term stockholders in shares of Quiksilver, Inc. (NYSE:ZQK) over alleged breaches of fiduciary duties and current long-term NYSE:ZQK stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 11/05/2012 -- An investor in shares of Quiksilver, Inc. (NYSE:ZQK) filed a lawsuit against certain exectuvie officers and member of the board of directors of Quiksilver, Inc. over, among other thing, alleged breaches of fiduciary duties and waste of corporate assets.
Investors who are current long-term stockholders of shares of Quiksilver, Inc. (NYSE:ZQK), have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that in gross breach of their fiduciary duties as directors of the Company, the members of the Board’s Compensation Committee knowingly granted restricted stock units to three Quiksilver executive officers in deliberate violation of the Company’s 2000 Stock Incentive Plan.
The Company’s 2000 Stock Incentive Plan allows the Compensation Committee to grant equity awards such as stock options, restricted stock and restricted stock units to executive officers, employees and directors of Quiksilver, Inc.. The Company’s 2000 Stock Incentive Plan, as approved by Quiksilver’s shareholders, specifically prohibits the Compensation Committee from granting any one person more than 800,000 shares of Quiksilver common stock in any calendar year.
The plaintiff alleges that in blatant violation of this limit, in 2011, the Compensation Committee granted each of three Quiksilver executive officers equity awards for more than 800,000 shares of Quiksilver common stock. Specifically, on June 13, 2011, the Compensation Committee granted Quiksilver’s President and Chief Executive Officer (“CEO”) 2,000,000 restricted stock units and two toher defendants, one the then Presidents of Quiksilver Europe and Quiksilver Americas, respectively, 1,000,000 restricted stock units each.
Quiksilver’s Net Loss for the respective time periods increased from $9.68 million for the 12 months period that ended on October 31, 2010 to $21.26 million for the 12 months period that ended on October 31, 2011.
The total compensation of the top five officials at Quiksilver, Inc. increased significantly between 2010 and 2011. For instance, the Chairman of the Board, president and CEO’s pay rose from over $2.91 million in 2010 to over $10.2 million in 2011, the CFO and COO’s compensation increased from over $1.35 million in 2010 to over $4.07 million in 2011, and the Chief Administrative Officer, Secretary and General Counsel’s pay rose from over $1.25 million in 2010 to over $4.13 million in 2011.
On November 2, 2012, NYSE:ZQK shares closed at $3.40 per share.
Those who are current long-term stockholders of Quiksilver, Inc. (NYSE:ZQK) shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego