Intelsat SA has issued its proxy notice to shareholders for its AGM to be held on June 15th in Luxembourg.
The proxy notification was signed by Intelsat SA’s chairman, Dave McGlade who is still at the business despite allegations of past insider dealing. A Federal Court lawsuit in January 2021 claims that McGlade, Intelsat’s chairman and former CEO, sold stock in the satellite operator on November 5th 2019 – a few hours after the company’s CEO learned that the FCC was likely to vote against a proposal that would have earned the company billions.
The insider allegations all concern Intelsat’s activities prior to and immediately following the FCC’s decision on how key C-band frequencies were to be sold.
“This is the quintessential insider trading case,” read the lawsuit filed by law firm Labaton Sucharow on behalf of Intelsat shareholder Walleye Group. “Intelsat, a satellite operator, was successfully pursuing a bet-the-company-deal with the FCC. Its board chairman, defendant David McGlade, and its two largest shareholders, defendants BC Partners and Silver Lake, sold $246 million in stock the very same day they learned the FCC was turning against the deal.”
There is no mention of the allegations against McGlade in the proxy statement. McGlade is up for re-election to Intelsat’s board until 2024. His current base compensation is $350,000.
CEO Steve Spengler is also up for re-election to the board. His total compensation is shown as $10.191m for 2020. Intelsat SA’s net loss for 2020 was $1.156 billion. Some 46 pages of the overall 57-page document are concerned with director’s pay and compensation.