With YTB's stock looking to fall below the dollar mark soon, I thought this was a good time to point this out and ask this question regarding the bonuses that YTB pays out.At one point, I had heard that the bonus checks were not really cash, but in stock. Another time I heard that they were available in cash at face value, but if the recipient opted for shares of stock, there was a multiplier of some sort--ie: $10,000 cash or $15,000 in stock. I had been assured by a director that there was no such program, yet I was able to dig this up in the "Copyrighted Compensation Plan". However, this only applies to the Achievement Level Bonuses which appear to be the monthly bonuses for the directors. But why would a director take the stock? First the performance (now that the principles have sold most of theirs) is less than stellar. And second, it has no value anchor. That is like going to the local Walmart and having the cashier make an arbitrary price determination. YTB has the sole authority to determine the value of the shares? What's the deal with that? Shouldn't your tax basis be based on the market value the day the shares are awarded? And it is a two way street here (but I suspect it likely is structured as a one way). As a director, I may be busting my chops to build my business and am awarded a $10,000 bonus. But rather than issuing me 10,000 shares, YTB can issue me 10 shares...simply because the Tomer's believe the stock will rebound to the $1,000 mark? I could be wrong, but I doubt that they are issuing the value at where it was a month ago, six months ago, or a year ago.
All Achievement Level Bonuses are paid by an equivalent value in stock options in
common stock of YTB International, Inc. issued and deemed earned on June 15 of
each year as to bonuses qualified for January 1 thru June 30, and on January 15
following the calendar year in which the Director qualified for the bonus between
July 1 and December 31. The equivalent value is determined exclusively by YTB.
Nice compensation plan there! Methinks the directors are stretching their lower back muscles without realizing it. And the Tomer's are are buying stock in Vaseline.
Not looking like it now, it IS below a dollar at this moment. Like I said you can't keep a sinking ship afloat for long. AMAZING!
ReplyDeleteI bet the collapse of the stock 6 months ago was a "misunderstanding" right? And Coach said it would be fine? Or was it Scott?
1:34pm Eastern time
ReplyDeleteYTB INTL INC CL A (Other OTC:YTBLA.PK)
Last Trade: 0.98
Trade Time: 1:15PM ET
Change: -0.03 (2.97%)
Wow, they give Cauthen a new title and the stocks drop below a buck.
ReplyDeleteJohn;
ReplyDeleteTo clarify for you, the $10K bonus is not a Director Bonus. We awarded 300 $10K checks in 2007. Cash not stock.
Acheivement Bonuses are as follows
At the Level 2 = $50,000 Bonus
(44 Given out)
At the Level 3 = $100,000 Bonus
(23 Given out)
At the Level 4 = $250,000 Bonus
(14 Given out)
At the Level 5 = $1,000,000 Bonus
(6 Given out)
If stock was given at the time it was awarded @ $1.00 per share. Most were given out before the 1-3 split this summer. Now worth 3 times it's value.
I’m not sure I follow your theory about what the Tomer’s “could do” with giving out 10 shares with the hope it would go up to $1,000 per share, I do know however, 1 share equaled $1.00 per share.
I believe, (not positive however) we have stock in reserve to be awarded this way in the future @ $1.00 per share.
98 cents!!! It must be all the awesome news thats driving the stock down!! AMAZING!!
ReplyDeleteMy point on the Tomers and having YTB fix the price of the stock.
ReplyDeleteSay I am entitled to a $30,000 bonus. Today, based on the stock, I would own 30,000 shares. ($1.00 a share)
But since the price per share is determined by YTB (Tomers), they could very simply say that we are declaring the value to be $10,000 per share and hand over 3 shares to me--effectively giving me a $3 bonus.
I imagine the share determination must be someplace...what is it based on? Average of last year? Last 180 days? Since inception? The date of joining? See...with a variable such as that, there is a LOT of room for fudging the numbers.
And I don't know, but if the shares are overvalued, I imagine there is a write off for the "gift" at the "valued" price.
A tad off topic but not really. I think it was "Proud" yesterday who mentioned a "Director's Ring". I want to see a picture of one of those rings. I'm wondering where they get them? I know Mary Kay gets some of their trinkets (aka: prizes) from http://shop.thewhitneycollection.com/Public/Main.aspx
ReplyDeleteFor as much money as one sinks into "the business" they could buy their own CZ for next to nothin'
Would love to see a pic of one.
John;
ReplyDeleteI understand what you are telling everyone, I get that. You’ve taken one sentence which quotes “The equivalent value is determined exclusively by YTB” and ran with it.
Technically, you are correct that YTB (Tomer’s) “could” do that.
For as long as I’ve known this stock option to be in effect for Directors the cost basis has always been $1.00 per share. Back at the Convention when Juliet St. John was awarded her 1 Million shares, it was @ $1.00 per share, and the company has secured additional shares for further bonuses to be awarded @ $1.00 per share.
Rick Ricketts was awarded his 1 Million just over a year ago @ $1.00 per share. It’s now worth $3 Million today because of the split. My Director was awarded 50K in shares and it’s now worth $150K.
By the way, both Rick and Tim could have taken cash at the time, but opted for stock. Based on what we have just learned do they still need to bend over? (The cash option is no longer available.)
I guess I’m having a problem with your hypothetical here when the reality of what the YTB (Tomer’s) are doing is so much different.
For the record, there were some smart investors who took advantage of the little “sale” this afternoon.
Our stock closed up .04 to finish off the week @ $1.05.
So much for the two week predictions. ;-P
PS - If you want to count 2 hours of below the $1 to prove to us that you were right, you can certainly have it.
I think there is a ruby and a sapphire, but I could only 'google image' this one.
ReplyDeleteKind of gaudy, but so are Super Bowl rings. But I'm a girl, so I'm picky on my diamonds ;)
http://www.yourtravelbiz.com/images/Biz_Rep_Images/BR09-16-05_ring.jpg
Here I created a post with the ring photo here
ReplyDeletehttp://notravelmlms.blogspot.com/2006_01_01_archive.html
Hey ytbscam. How did the stock go today?
ReplyDeleteCongrats from going to a low of .98 cents...which I said would go below a dollar, to a whopping 1.05!!! Enjoy that cent, buy people all those cruises with that extra penny. To be happy about that cent....I wouldn't be to excited, and you didn't end up four cents above for the week.
ReplyDeleteYTBScam does not have a life. Rather than have a 60" flat screen TV in his living room to watch the playoffs this weekend, he has a "stock ticker" scrolling across his wall.
ReplyDeleteLOL! I've never seen anyone get so worked up about a stock price moving a few cents! (Sorry . . . !!!)
ewww - I looked at the link you put here elemenophee...Tacky lookin' ring. I also saw the one John posted and not much better. They look like a poor version of a class ring.
ReplyDeleteNow if we can just figure out the manufacturer of the ring. That's what I wanna know :-)
It's not about the "tacky" ring all those folks in the picture received. It's more about the $1,000,000.00, that comes with the ring! Maybe you could send us a link so we can take a peek at yourdiamonds and that big ole check! Smiles :>)
ReplyDeleteThat would be a million dollars in stock that YTB sets the value to! So, yes, if I were a director, I would be pretty worked up about the dismal performance of the stocks.
ReplyDeleteSource for rings:
http://www.thephoenix.com/SoxBlog/content/binary/CrackerJack.gif
lbtravel said..."YTBScam does not have a life. Rather than have a 60" flat screen TV in his living room to watch the playoffs this weekend, he has a "stock ticker" scrolling across his wall."
ReplyDeleteNow that's FUNNY. LOL
Hey scam, I hope your not running out of these(!). Just in case, I'm sending you some more. Just cut and paste when you post your stock reports.
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
TravelPro said...
ReplyDelete"It’s now worth $3 Million today because of the split."
Wrong. Total worth value does not change because of a split. If you have 1 stock worth $10 and it splits 2 for 1 you still have $10 total. What you would have is two stocks worth $5 each - the effect is to increase the liquidity of the stock so that it is more attractive to buyers and sellers (in this case more attractive to the IMRs).
Actually I have a 52" widescreen tv if you want to know the truth! And I do have a stock ticker...and 80% of then were positive today. The same people that were talking yesterday about the market being down, are now jumping out of their gords about it going up the last hour...it still closed a whopping 1 cent higher than the day before...AMAZING! But it did drop below a dollar as I said it would two days ago...its not over yet. AMAZING!
ReplyDeleteJohn, I tried to use that link and even though it didn't pull for me (I might be missing some characters), I really loved the final verbage "Cracker Jack".
ReplyDeleteMe thinks John made a funny!! LOLOL
MonkeyBiz;
ReplyDeleteYou are correct about the “value” of the stock, and it’s the largest reason why YTB’s price has dropped. Stock “worth” $10 a share after a 1-3 split should level out to around $3.33 per share. You are also correct that this has made it more attractive for IMR’s.
What you are missing is that John’s scenario is also correct, and it works both ways.
I’m simply informing John and others here what has ACTUALLY happened. I’ll use word for word what John quoted above, but simply change the number to reflect what YTB really declared. I will also use your $10 value, which was accurate about this time last year when Rick’s $1 Million bonus was awarded.
“But since the price per share is determined by YTB (Tomers), they could very simply say that we are declaring the value to be $1 per share and hand over 1 Million shares to me [Rick] --effectively giving me [Rick] a $10 Million bonus.”
This same stock did a 1-3 split in August of last year, and those shares of stock (now 3 Million shares) have a street value of $3,150,000 as of the close on Friday, January 18th.
While John is trying to tell everyone that Directors are “bending over” he’s the one who has a jar of Vaseline hiding behind his back for all of you.
PS – Sorry John…couldn’t let that one go. ;-P