Race options thread, page-279

Too much skin in the game tends to cause the opposite problem of encouraging management to play it safe and not run the company for maximum shareholder returns.

The opposite problem of not having enough skin in the game encourages management to drag out the development process and results in excessive shareholder dilution as they are rewarded via their salary. We see this behaviour all the time with the “lifestyle businesses” which move forward at a glacial pace diluting their shareholders to oblivion as they continually raise capital at an ever lower SP.

I am not motivated by my salary, but making RAC the biggest success possible for both patients and shareholders. The safe play would have been to quickly sell off RC110 for a modest amount to treat AML. I would have walked away with a decent return, but most shareholders would have lost money and Bisantrene would be unlikely to ever reach its clinical potential.

I am certainly not worried about my reputation in the industry as I am one and done with RAC.