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  "documentTitle": "Focus Media Holding Ltd. (FMCN)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2011-11-21 00:00:00",
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  "notes": "The slide uses a narrative structure to expose governance failures and excessive compensation, contrasting FMCN with Exxon Mobil.",
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      "text": "Considering the size and complexity of XOM relative to FMCN, it is almost laughable that an “independent” director is diluting public shareholders to this extent.",
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      "text": "Unfortunately, the egregious level of Board of Directors compensation pales in comparison to equity grants to management. In 2008, 2009, and 2010, employee stock compensation was $42 million, $66 million, and $45 million, respectively. This level of equity compensation, for an apparently small number of employees, is shocking relative to the size of the company and the share price performance over the period. Until some real adults are in the room, it is difficult to believe these round-robin compensation practices will cease.",
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      "kind": "paragraph",
      "text": "Jason Jiang and Friends – All Aboard the FMCN Money Train",
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      "text": "The Curious Case of Professor Qi",
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      "text": "Mr. Daqing Qi is a professor at Cheong Kong Graduate School of Business and also serves on the board of multiple publicly listed companies, including Bona Films (NASDAQ: BONA) and Daqo New Energy (NYSE: DQ). On March 25, 2011, Mr. Qi filed an SEC Form 144 for the sales of shares resulting from options granted barely three months earlier, on December 20, 2010. These options had a strike price of ZERO and Mr. Qi's total proceeds from the sale were approximately $1.4 million. This level of compensation far exceeds of standard annual independent director compensation. The independent directors at Exxon Mobil (NYSE: XOM), the world's largest and most profitable company in absolute dollar terms, were each compensated $272k in 2010. Considering the size and complexity of XOM relative to FMCN, it is almost laughable that an “independent” director is diluting public shareholders to this extent.",
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      "text": "Under the terms of basic corporate governance, the Board of Directors at a minimum owes public shareholders a duty of care and duty of loyalty. Board of Directors compensation is supposed to align their economic interests with those of shareholders and as a result their independence from Management is essential. Unfortunately, the compensation scheme for FMCN's Board of Directors is outsized and does not correspond to the interests of public shareholders. FMCN takes full advantage of the exemption provided to Foreign Private Issuers by the SEC and does not provide a detailed break out of individual director compensation. However, based on 144 filings, it is possible to gain some insight to the amount of shareholder dilution due to Board of Directors compensation.",
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