what a well paid bunch they are.., page-11

Oly, TCG and others interested in NUP, have taken the time to speak to the NUP management on comments made on this thread under the heading

" What a well paid bunch they are "

The following is the CEO reply which should be of interest to shareholders, post, current and future, and HC people in general, with URANIUM specs

Quote

In short the HC commentators have taken the total "economic" value of remuneration (ie, including the notional value of options as required by accounting standards) to arrive at their figures. A most unrealistic (and ignorant) way to proceed.

In my case, in 2007/08 I received a cash salary of $220,000 plus bonus of $35,000 to give a cash total of $255,000. Superannuation of 9% was added to the base $220k component. These cash figures are below sector averages if you care to look up a number of companies.

The 3m (25c options) issued in early 2007 (but vesting in 3 x 1m tranches over the next 3 years, hence resulting in remuneration values in each of those years) must be valued under accounting standards and an independent valuation is sought using option pricing theory. This provides a notional value of the "free" options which is brought to account because the company is proving a "valuable" asset to me but not one that actually costs the company "real" money. You will note however that the value of that asset can then vary wildly as market values for the underlying shares vary. A 25c option is worth little if the share price is under 25c but potentially heaps if the share price moves over 25c - hence the incentive nature of option packages. However the options last only 3 years, then expire. On option expiry, the accounting standard does not allow the claw back of the value put on the balance sheet as a cost when they were issued. Don't ask me why. Yet these balance sheet changes do not involve actual cash payments so shareholder's funds are not impacted. It's an area of accounting practice that has me baffled - like goodwill - where I believe there should be a clearer distinction between the cash and non-cash reporting elements in Financial Reports.

Of course if the options expire before they have real market value (ie, share price remains under 25c) option holders get nothing. Hence Boards issue more options to keep the incentive structure in place and do so rather than use real cash for higher salaries. But issuing more options triggers more accounting standard calculations and add to the non-cash hit on the balance sheet.

So the HC reports contain a total based on cash and non-cash components, the latter being the "value" of my 3m options.

I have made it a key element of my leadership at NUP that shareholder funds be directed primarily at "in-ground" investment - hence small offices, few core staff, tight salary packaging, few vehicles, cost-effective travel (using lowest fare approach), etc. Our overheads are at the lower end.

NUP has sufficient funds for a modest program in 2009 but will be opportunistic in seeking capital top ups given current market conditions. The Toro rights will provide an early example of how market calls are treated. However sitting on our hands just to survive is not an option. We need to progress our program to get results that show the market we are different and aim to be not only a survivor of the coming consolidation but one of the preferred survivors.

I have in place some initiatives designed to demonstrate just that and expect to be able to announce them before the AGM.

Unquote

As a shareholder in the top 20 of NUP, i have a vested interest in the future of this company. Dennis is a straight shooter, and a conservative manager and Pirra feels that we are in good hands. Of course the old story applies,"pay peanuts and you get monkeys " Here in the west, top people command top $$$$$'s and they sure get that. IMO the payments made by NUP look Ok, conservative ???? who knows. Need to check out some other U speccie companies.

Sure URANIUM is not favourable { and WHAT is atm } but this will change in the years ahead, as nuclear power plants IMO is a clean energy that many countries will embrace. Now is the time to top up imho. The price of all stocks atm is quite ridiculous, but thats the market, thanks to the yanks.

Time will tell Always does