The single most important litmus test that shareholders should conduct when evaluating a company is to determine whether or not the management of that company has the same alignment of interests as the shareholders. Alignment of interests between shareholders and management is met when managers themselves are shareholders. Let me start with your Chairman: as of June 30, 2012, I beneficially own approximately 28% of Paragon's outstanding shares. Not a single share was acquired via an option grant or other compensatory means but all were purchased at or above prevailing market prices. My fortunes are 100% aligned with yours; I prosper when you prosper but more importantly, I will equally feel any financial pain.Our two other Directors, who joined the Board earlier this year, have already become shareholders. And the compensation structure of both our recently hired Chief Executive Officer and Chief Financial Officer was designed to ensure that their financial fortunes prosper when intrinsic value is increased. We will benefit with you, not at your expense.
Paragon Technologies' Chairman Sham Gad's Annual Letter To Stockholders
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