San Diego, CA -- (ReleaseWire) -- 12/17/2012 -- An investigation on behalf of current long term stockholders in shares of PriceSmart, Inc. (NASDAQ:PSMT) was announced concerning potential breaches of fiduciary duties by certain directors of PriceSmart, Inc. in connection with the Equity Incentive Award Plan.
Investors who are current long-term stockholders in shares of PriceSmart, Inc. (NASDAQ:PSMT), have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.
The investigation by a law firm concerns whether certain directors potentially breached their fiduciary duties in connection with their conduct in seeking shareholders’ approval for an Equity Incentive Award Plan.
In the Proxy Statement filed by PriceSmart, Inc with the Securities and Exchange Commission the Board of Directors recommends that PriceSmart’s shareholders vote to approve the Company’s 2013 Equity Incentive Plan, which would increase the number of shares of common stock available for grant under prior plans by 600,000.
According to the investigation the issuance of the additional shares could have a substantial dilutive effect on the shares of PriceSmart common stock.
PriceSmart, Inc. (NASDAQ:PSMT) reported that its Total Revenue increased from over $1.24 billion for the 12 months period that ended on August 31, 2009 to over $2.04 billion for the 12 months period that ended on August 31, 2012 and its Net Income for the respective time periods rose from $42.32 million to $67.62 million.
Shares of PriceSmart, Inc. (NASDAQ:PSMT) grew from as low as $14.49 per share in July 2009 to as high as $83.12 per share in April 2012.
The total compensation of certain top officials at PriceSmart, Inc. increased significantly between 2011 and 2012. For instance the Executive VP and CFO’s pay increased from over $366,000 in 2011 to over $1.95 million in 2012, the Executive VP, Secretary and General Counsel’s pay rose from over $392,000 in 2011 to over $1.97 million in 2012, and the Executive VP and COO’s compensation grew from over $402,000 in 2011 to over $2.54 million in 2012.
Shares of PriceSmart, Inc. (NASDAQ:PSMT) closed on Dec. 14, 2012, at $74.67 per share.
Those who are current long-term stockholders in shares of PriceSmart, Inc. (NASDAQ:PSMT), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego