According to a transcript of the meeting obtained by Reuters, Jia called LeEco's cash woes, "far worse than expected" — not the sort of statement of confidence shareholders were likely hoping for as the Chinese electronics maker looks to right its ship.
Retained earnings, found in a company's statement of changes in shareholder equity, are not as closely watched by investors as are a company's net earnings, but they are less easily manipulated.
"Leader Pelosi's statement was an indictment of shareholder capitalism and how it's falling short," Drew Hammill, a spokesman for Pelosi, responded in a statement.
Separately, the company last week sent out a proxy statement to shareholders requesting authorization to double the number of outstanding shares.
Because of this the SEC fined Bank of America/Merrill Lynch $33 million for its "misleading statement to shareholders".
"Restoring your trust and the trust of all key stakeholders is our top priority," read Sloan and chairman Stephen Sanger's 2017 statement to shareholders before its annual meeting.
Besides, these people say, option costs show up in the footnotes of companies' financial statements, so shareholders can assess their effects on results.
After Monday's reductions, the firm's net exposure to the debt of Portugal, Italy, Ireland, Greece and Spain was $59 million, or 1.7 percent of shareholder equity, according to the latest statement.
The S.E.C. had accused Mr. Mozilo of masking the risks of the subprime mortgage market in public statements to shareholders.
Xerox still faces a number of shareholder suits relating to its financial statements.
