In the article authored by Jeff Smith, reflecting extensive research of securities filings in the US and Canada cited my comments:
Fred Whittlesey, a marijuana compensation expert and founder of the Seattle-based Compensation Venture Group, noted that he could write a “lengthy piece on all of the errors and incorrect disclosures in cannabis companies … there seems to be an industry-wide disregard for accuracy in securities filings.”
In addition, several MSOs disclosed equity awards in separate sections from their executive compensation summary table, but they did not include contingent, or estimated, values to those awards, as is customary in such reporting.
Whittlesey also was critical of that approach.
“Investors want to see everything on one page, all the numbers,” Whittlesey said. “Board members want to see everything on one page, all the numbers.”
“If a company is not willing to provide full transparency on executive pay to all stakeholders, we need to question why that is.”
Whittlesey estimated the median value of the 1.5 million options at $2.62 a share, for a total of $3.93 million, employing the widely used Black-Scholes option pricing model based on pricing data in Cresco’s disclosure.