Originally Posted by
CLMP
While I don't think AQP is off the table, they are spending a considerable amount of money developing ADAP software for the MD80 and Airbus. There are a myriad of CBT programs out there but in true Allegiant fashion, they think they can build a better (and cheaper) mousetrap. Throughout my tenure here, this has backfired 100% of the time. Did I mention that MG owns the video production company?
That's one of the things that is being addressed by some of the stockholders here under what they consider "questionable related transactions" :
allegiantltrfinal.htm - Generated by SEC Publisher for SEC Filing
At the June 18th annual shareholder meeting, we urge you to Vote Against Audit Committee members Linda A. Marvin, Gary Ellmer and John Redmond for sanctioning a series of highly questionable and costly related transactions with CEO Maurice Gallagher over the past year. Making up three quarters of the Audit Committee – responsible for approving related party transactions -- the three directors share extensive business or employee ties with CEO Gallagher, and their collective failure to guard against what we view as the poor use of shareholders’ capital spotlights serious weaknesses in the board’s structure. Allegiant’s governance has failed to evolve along with the airline’s growth and suffers from many of the trappings of a founder-dominated company. The following are of critical concern for shareholders:
- New and highly questionable related transactions with the CEO that are equal to one-third of the company’s SG&A expense in 2014. This includes sponsorship of CEO Gallagher’s NASCAR racing team, for which his son drives; a video production company, Alpine Labs, co-founded by CEO Gallagher, for the production of a game-show; and Adapt Courseware, a developer of online teaching tools also controlled by CEO Gallagher, for the production of company training tools.