Folks, I contacted management because I felt that this whole saga had likely been overblown, and to be honest, after reading the resolution had no idea what it exactly meant.
In summary: (not verbatim)
This is simply an amendment to the existing employee incentive plan, previously approved by shareholders, and which will allow the Board to issue performance rights, rather than options, so they can recruit and retain the right people. Performance rights are far less dilutive than options (interesting and salient point!)
There has been no change in the number of options awarded to existing employees or management, compared to that previously approved by shareholders. (This is in direct contrast to what Ozblue has said, and I would strongly suggest he check his facts and figures prior to posting as he has. In my view, given he knows Management, he should have sent his misgivings to Management/Ken for their view/review prior to any sort of public posting - just my view)
Any management options previously approved by shareholders are subject to performance criteria and aligned with shareholder interests. (Totally agree. This idea that they get paid a salary and therefore don't deserve performance rights is uncommercial, naive and just plain silly)- again my personal view
What the Company is attempting to do in the NOM, is to move the employee share scheme away from the option model (typically dilutive) and toward performance rights. This is an effort to improve the governance of the ESS and have it representative of the Company. Performance rights are more aligned to current market practice than options.
Importantly, "management is not in the mould of feathering their nests. We are in the industry for the long haul, value our reputations, and in any case want to create a Company that is both a success and respected by our industry/investment peers". I knew that anyway!
So, I think the Company would do well to clarify all this for the poor suffering shareholders (lol), and I hope this helps. I, for one, trust Management, and I just wonder whether some of the shorters latched on to the confusing wording of the resolution and saw a chance to unsettle a few people.
I am looking forward to 2017, and would like to take this opportunity as a co-shareholder to which everyone the best. Admittedly the share price has been in the doldrums for a time, but I was there when it went from 6.5c to 3.5c over a six month period. I know all about sharemarket pain.
I think the New Year will be pretty exciting for PLS holders.
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