Robbins Umeda LLP Announces an Investigation of Monolithic Power Systems, Inc.
Robbins Umeda LLP, a shareholder rights litigation firm, has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Monolithic Power Systems, Inc. (“MPS”) (NASDAQ: MPWR). MPS designs, develops, and sells analog and mixed-signal semiconductors used in consumer electronics, communications, and computing markets. The company also manufactures lighting control devices for LCD panels used in computers, DVD players, and televisions. The company was founded in 1997, and is headquartered in San Jose, California.
Robbins Umeda LPP is investigating whether the directors and officers of MPS harmed the company by breaching their fiduciary duties to shareholders. In particular, our investigation focuses on the decision by the board to allow dramatic increases in total executive compensation in 2010, in some cases by as much as 462.5%, despite sagging stock prices during the same period. While MPS’s shareholders witnessed a 31% loss in the company’s stock price in 2010, the board’s Compensation Committee allowed the Chief Executive Officer of MPS, Michael Hsing, to receive a 462.5% increase in total compensation. Additionally, the committee also allowed other MPS executives to receive similar increases in total compensation. In 2010, total compensation for MPS’s President of Asian Operations, Deming Xiao, rose 230%, while the company’s President of Worldwide Sales and Marketing, Maurice Sciammas, received a 147% increase.
Notably, at an annual meeting on June 16, 2011, only 36% of MPS’s shareholders voted in favor of the company’s increased executive compensation levels. Notwithstanding, MPS’s board has failed to rescind the 2010 increases in total compensation for the company’s top executives.
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