Baja Mining sued by Greenslade's daughter
2012-06-01 13:34 ET - Street Wire
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by Mike Caswell
Baja Mining Corp. is facing a lawsuit in the Supreme Court of British Columbia from Kendra Low, its former corporate secretary and the daughter of former company president John Greenslade. She complains that the company wrongfully dismissed her from her $250,000-per-year job and that it defamed her by saying she was underqualified and overpaid. She seeks $375,000 in severance pay plus damages for defamation.
The suit comes three weeks after the end of a contentious proxy battle between Mr. Greenslade and the company's largest shareholder, Mount Kellett Capital Management LP. The dissident group accused Mr. Greenslade of operating the company as a "personal fiefdom with no regard for proper disclosure or good governance," among other things. The dissidents took over the board on May 7, and immediately fired Ms. Low and secured Mr. Greenslade's resignation.
Ms. Low filed a notice of claim against the company at the Vancouver courthouse on May 28, 2012, after what she says were unsuccessful efforts to address her dismissal. She claims that she had an employment contract that entitled her to 18 months of severance pay, which amounts to $375,000. The company fired her on May 7, without any good reason, but has since refused to honour the terms of the contract, according to the suit.
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Paying your Daughter over $20,000 a month is ridiculous. When industry peers are lucky to get $5,000 a month. Baja is not a producing company, and investors are assuming all the risk to pay for his children’s inflated salaries. Makes you wonder how much Mr. Greenslade was receiving for compensation? How many other family members had Mr. Greenslade employed? An 18 month golden parachute, that no one other than a father or criminal would sign off on. Disgusting!
Posted by HoweStHustler at 2012-06-01 15:33
Can you say "nepotism" boys & girls ? LOL
Posted by gregarious at 2012-06-01 16:23
Sorry Ms. Low, but $250,000 per year for corporate secretarial duties at a development stage junior is totally insane. Just take a look at peer companies.
That is rubbing it in the face of long suffering shareholders.
Posted by Axeman at 2012-06-01 17:58
"Makes you wonder how much Mr. Greenslade was receiving for compensation?"
Sedar says in the 2011 proxy circular that John Greenslade's base salary, paid in 2010 to his and his wife's Kendron Petroleum Management Corp, was $377,500, and he received a bonus of $750,000 (18. This bonus was paid in November 2010 upon completion of construction financing for the Boleo project in excess of US$1.1 billion).
While that isn't chickenfeed, this is the mining industry and a $1.1-billion financing was quite a major coup (bonuses of $1.34 million were paid to five individuals and were identified as being related to the financing).
Posted by harpinder at 2012-06-01 18:44
And what of Denby Greenslade? Another beneficiary of the Greenslade largess? As far as that $1.1 billion financing, wasn't that Endeavour Financial that put that together and got paid well for it?
Posted by BeenAround at 2012-06-03 17:26
Low won't win - all she'll do is drive home the point that she was grossly overpaid and unqualified - thanks to daddy running the company like his personal fiefdom. New management was kind not to seek restitution for back pay. If this twat thinks she's entitled to 18 month severance, she's totally delusional. That said, such a suit is corporate greenmail (perfect for a spawn of a Greenslade) and she'll probably get some cash to go away.
Posted by ron at 2012-06-04 10:15
I personally would think they will file a counter suit on behalf of the company for fairly obvious over payment due to perceptible nepotism........ie, the amount paid vs 5k a month for a corporate secretary under "normal" circumstances comes out to about 1.4 million...PLUS interest......
If she was MY daughter I'd calmly advise a quiet walk into the sunset with my windfall..................
Posted by hardly at 2012-06-04 10:30
Sorry but the Corp secretary position in a small development mining company is a $60k a year job and 90% of the work is done by the company's lawyers.
Posted by BS at 2012-06-04 11:02
What a stinker of a case! Seems a lot of money was going into family coffers. Legal? Probably as people like this tend to cover their tracks very well. Moral and ethical? I do not know, but worthey of a discussion.
Posted by Phat Dean at 2012-06-04 12:10
As several other have pointed out....look at peer companies compensation!
Posted by Lucky Gal at 2012-06-04 13:40
So, our mining "exploration" jerks keep selling shares and diluting, and at the same find a convenient way to make a nice living off of spending the cash not on explortion of properties, but exploration of how to use the company cash for their own personal benefit.
And this must be the tiny tip of a huge iceberg.
So, it is said that there is a sucker born every minute? Guess I have to admit to be one of those dumb suckers. I actually believed the money was being used for exploration at times.
And then they whine like babies because they find it tough raising funds?
Pleeeeeeeese, give me a break!!!!!!!!!!
Posted by Dave Colonel at 2012-06-04 14:14
Stephen Lehner, Director
Lorie Waisberg, Chairman
Ken Murphy, Director
Giles Baynham, Director
François Marland, Director
Wolf Seidler, Director
C. Thomas Ogryzlo, Interim CEO, Director
Posted by Pudgy Dean Found a Job! at 2012-06-04 14:39
This "company" has 340 million shares outstanding. Let us assume that all these were issued at 10 cents, although some were probably issued at prices higher than that.
Anyway, at ten cents, that would mean about $34 million???????? Not too bad. Where did it go, and by how much?
And to think that I have written letters supporting the efforts of these "miners."
By the way, $60,000 salary for that menial work? Given a couple months training, any high school graduate of average intelligence could easily handle it. No need for higher education. Just think parents, get cozy with the right mining exploration executive. That's what I am going to do.
Posted by Dave Colonel at 2012-06-04 14:45
I could not be more annoyed to think that I got sucked into buying BAJA shares for $1.88 several years ago, and to see them evaporate into "daddy's little girl" overblown salary. What took Mount Kelly this long, and is it not the duty of a corporate secretary to blow the whistle and warn shareholders of coming disasters? I would say that there was a distinct lack of performance in this regard, and BAJA should certainly countersue on that basis to recoup the overblown "daddy's little girl" compensation of the past eight years.
These Vancouver - what's the word when you are paid for sex again?- cost people a lot of money- including me- not this company in particular however
Posted by sore rass at 2012-06-05 08:15
Kendra Low incredibly overpaid...as to how qualified she is...we will never ever know because she will never work in the industry again...as who could and would want to, afford her. Any pubco that does bring her on board should declare her salary on the site's home page....so anyone investing in that company can do so at their own peril.
Posted by Phat Dean down to part time... at 2012-06-05 15:19
WOW!! NEPOTISM REACHES NEW HEIGHTS. SHE WAS PAID 4 TIMES INDUSTRY STANDARD. MONEY SHOULD HAVE BEEN USED FOR MINING OPERATIONS NOT TOO PAY A SECRETARY
Posted by VALDESOL at 2012-06-06 09:20
In all seriousness, I believe that the cost of the BAJA project was correctly estimated. In Mexico--where graft is a bigger sport than soccer--the $246 million overrun repesents the cost of the graft that contractors have to add to their contracts to avoid being put out of business by the many officials (both inside and outside the company) that have their finger in the graft pot. Considering the size of this graft and the central position of the corporate secretary abel to open the appropriate doors with a phone call, it would surprise me if the total of the many stuffed envelopes marked "FREE GIFT FROM . . ." would not make the $2 million salary (over eight years) appear like a pittance by comparison. Mind you that failure to deliver could be a death sentence. If you want to confirm this check out the recent press releases of EXELLON-- a Canadian miner being harrassed at the Canadian government level by Mexican Union officials. They are upset about not being in the graft pot.
Posted by Analyst
at 2012-06-09 13:42
Whoh! A perfect inverse ten-bagger!
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