Monolithic Power Systems, Inc. under Investor Investigation over Executive Pay

July 6, 2011 - PRLog -- An investigation on behalf of investors in shares of Monolithic Power Systems, Inc.  over possible breaches of fiduciary duty in connection with Monolithic Power Systems’ executive compensation practice was announced.

If you are a current long term investor in shares of Monolithic Power Systems, Inc. , and/or if you have any information relating the investigation, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The investigation by a law firm focuses on whether certain directors and officers of Monolithic Power Systems, Inc harmed the company by breaching their fiduciary duties to shareholders. In particular the investigation on behalf of current long term investors in Monolithic Power Systems (MPWR) focuses on possible shareholder claims that certain of Monolithic Power Systems’ senior officers and executives were unjustly enriched through their receipt of unwarranted, excessive or unearned compensation in past years.  

Monolithic Power Systems CEO, President and Chairman of the Board’s compensation rose from $1million in 2009 to $5.625million in 2010.

Other top executive pays increased also substantially in 2010 compared to 2009. For instance the President of MPS Asia Operations’ pay rose from roughly $622,000 in ’09 to $2.05million in 2010 and the Senior Vice President of Worldwide Sales and Marketing’s compensation increased from about $582,000 in 2009 to $1.44million in 2010.

However, Monolithic Power Systems’ shareholders recently expressed their disdain for executive pay packages by voting “no” on Monolithic Power Systems' say on pay provision. Monolithic Power Systems Inc received only 36 % support for its pay practices at its June 16 annual meeting, according to a company filing.

The investigation concerns possible claims that the prior compensation awarded at Monolithic Power Systems, Inc. is improper based upon its operating condition.

San Jose, CA based Monolithic Power Systems’ 12months Total Revenue rose from $134million in 2007 to $18.84million in 2010. However its Net Income fell from $24.23million for 2008 to $19.67million for 09. Additionally Monolithic Power Systems’ first quarter Revenue fell in the first quarter in 2011 from $50.25million a year earlier to $44.47million. Its first quarter Net Income decreased from $6.36million for the first quarter in 2010 to $1.89million for the first quarter in 2011.

Shares of Monolithic Power Systems, Inc. fell from almost $25 during 2010 to recently roughly $15.50 per share.

The investigation seeks to determine whether certain senior officers and executives at Monolithic Power Systems, Inc. were awarded salaries, bonuses, stock options and other forms of long-term, ‘incentive’ or retirement compensation that were excessive or unwarranted based on the Monolithic Power Systems’ performance as compared to what senior officers and executives at comparable companies were making and/or results that were fraudulent, misleading or not long-lasting.
The board's Compensation Committee allowed the CEO to receive a 462.5% increase in total compensation and other Monolithic Power Systems executives to receive similar increases in total compensation in 2010.

Those who are current long term investors in Monolithic Power Systems, Inc. (Public, NASDAQ- MPWR) stock and/or those who have any information relating the investigation including also whistleblowers and former employees, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.