Your American tower figures don't add up

Discussion in 'Wireless Estimator Site Discussions' started by tfowler, Jul 18, 2013.

  1. tfowler

    tfowler Friend of the Community

    Your article says that Tacilet has more than 2/3 of his net worth invested in American Tower stock which you say is 7.4 million. That doesn't make sense if his total compensation last year alone was over 11 million. 8 million of that was in options and stock. So even if he had to pay 30% for capital gains it would still have left him with 5.6 million in stock if he kept it.

    I think he has been with AMT for over ten years and he's trying to say his net worth is only 11 million when he made that just last year. Sounds like fuzzy math to me.
  2. Wireless Estimator

    Wireless Estimator Administrator Staff Member

    Agreed, the comment he made regarding his net worth was confusing.

    Jim Taiclet was appointed President and Chief Operating Officer of American Tower Corporation in September 2001, so he has been with American Tower just shy of 12 years.

    Prior to joining American tower he was President of Honeywell Aerospace. That position today is paying approximately $8.4 million in salary and compensation, so it would be likely that Taiclet had already banked a few dollars before joining American Tower.

    As of today, Taiclet directly owns 100,041 shares, valued at $7.4 million based upon Wednesday's closing price.

    Cramer said he shared Muddy Waters’ concern that 90% of the stock Taiclet receives he sells. Taiclet said that statement was “widely inaccurate”.

    In the interview, Taiclet said that more than two thirds of his net worth was in American Tower stock. And that would put him with a net worth of approximately $11 million.

    Although that amount would be coveted by 99.99% of our viewers, it appears to be too small an amount to have been amassed by the Street savvy Taiclet, who used to be a consultant at McKinsey & Company, specializing in telecommunications and aerospace strategy and operations.

    In the past 12 months alone, Edgar documents identify that from July 8, 2012 through July 7, 2013, Taiclet cashed in 184,000 options, netting $8.6 million before taxes, making the net worth math even fuzzier when you add in his $1.1 million salary and his $2 million bonus for 2012.

    But Taiclet’s net worth and faith in American Tower by holding onto an appreciable amount of stock seems like a non-issue regarding the company’s ability to continue to grow and provide shareholder value.

    Muddy Waters' primary concern was what they believed to be fraud by American Tower overstating the amount they paid in 2011 for the purchase of 666 Brazilian towers. Taiclet said that Muddy Waters' purported missing $250 million was accounted for in company transactions and American Tower issued a SEC document identifying the funds on Wednesday.

    Therefore, it appears that the Muddy Waters report personified muddying since it is doubtful that anyone at American Tower is going to trade Club Med for Club Fed, no matter how accommodating the jailers are.

    It looks, however, that they may be spot on regarding American Tower’s poorly advised investment in India.

    As reported before by Wireless Estimator, the country is fraught with fraud, bribery, ever-decreasing leasing rates and a host of other concerns for stability.

    Cramer ended his interview by stating that viewers should read the Muddy Waters report and then make their own decision.

    Although Jim Taiclet is a frequent contributor on Mad Money, Cramer mistakenly called him Jeffrey.

    Hopefully, Muddy Waters will not further their need to see short sales for American Tower by stating that Cramer was subconsciously thinking about Jeffrey Skilling, the disgraced CEO of Enron.

  3. Ginpole ll

    Ginpole ll Industry Observer

    I would like to see companies require that their management keep at least half of their stock that they received in options while they are an employee. That way you know they are going to keep the best interest of the company at heart and not make it temporarily look good so they can get their performance based bonuses and more options.

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