The stock lost 62 percent of its value the previous fiscal year. By comparison, the company's peer group of stocks has outperformed American Skiing by 371 percent. Even the unmanaged Russell 2000, a less than stellar performer in recent years, outperformed American Skiing's stock price by 692 percent. The company has lost so much money the past two years it was forced to dilute shareholders twice, to the point that original shareholder ownership is now less than half of what it was just two years ago. Surely, there is something that we're missing here that directors aren't.
Management insists the problems are all due to poor skiing conditions.
Despite the company's poor performance, management has certainly been well compensated. Otten also received several million dollars in additional compensation as a result of selling assets he held and then sold to the company during the recent fiscal year. Executive Vice President Chris Howard also got a salary increase. Four of these five executives received bonuses and stock options. The senior management team was awarded stock options representing more than 500,000 shares of stock during the 2000 fiscal year as shareholders lost half the value of their stock.