24/7 Wall St. Most Overpaid CEO Of The Day: Power Medical (PMII) CEO Michael Whitman

Power Medical Interventions (PMII) CEO Micheal Whitman is being paid an extraordinary base salary of $385,000 this year, according to the company proxy. In the meantime, his company is posting remarkably poor numbers.

Initial indications are that PMII’s shares could open down 40% today. The stock has already dropped from a 52-week high of $14.64 to $5.

Sales in the three months ended June 30, 2008 remained flat at $2.2 million compared to the first quarter of 2008, and decreased by 9% compared to $2.4 million in sales during for the second quarter of 2007.

Net loss applicable to common shareholders for the three months ended June 30, 2008 was $11.5 million, or $(0.67) per basic and diluted share, compared to net loss applicable to common shareholders of $10.1 million or $(2.69) per basic and diluted share for the corresponding period in 2007

The company is low on cash. The unrestricted cash and cash equivalents balance as of June 30, 2008 was approximately $11.6 million

Of course, PMII had an excuse for all of this. It has released a new technology and this is slowing the rate of adoption of its products.

Under the circumstances, Whitman is overpaid.

Douglas A. McIntyre