Announcement driven., page-44

Look at the effect on the share price subsequent to the CEO making a sell that considering her salary never would have had to make considering her ability to get a loan for present financial arrangements. The criticism is more than warranted. She wiped off over a billion dollars in shareholder equity due to personal financial commitments at less than the $5 million mark. It is absolutely an issue relating to fundamentals, you only have to look at the downgrade by Bell Potter to appreciate that this is something taken very seriously by institutional investors. Are we just going to pretend that the CEO somehow wasn't aware of this? Anyone who has dealt with stocks for a reasonable amount of time understands the effect of issues like this on share price. I've managed a relatively significant amount of money in stocks for over 6 years and have a degree in corporate finance; its not on the same magnitude of a mistake and I'm sure the company has a great future, but I haven't seen the same reckless thoughtlessness from management of major Australian companies outside of Retail Food group and Slater Gordon. Its fair to have high standards for company directors, and this absolute bottom of the barrel stuff.

"- the comment she could get personal loan of over $10m demonstrates your own financial inexperience."

Are you aware of her total salary including options and net worth? To pretend she couldn't have gone to the bank in her situation for a short term < 5 million dollar financial commitment is absurd. Even if you ludicrously believe that she couldn't have got a loan to cover these expenses, what kind of CEO has prior financial commitments that mean they will have to virtually immediately sell her entire stake in the company subsequent to taking the job? Laughable.


If you don't take this seriously, then maybe you ought to be lumped in with the category as I lumped her in. In regards to management of public companies, this issue is frivolous and ridiculous as they come. If there doesn't seem to be an accountability issue here to you, maybe you should check your pulse.