I have absolutely no problem whatsoever giving large, even massive bonuses if our SP is reflective of large or massive gains.
I do have a problem, a big one, with performance rights that gives million dollar bonuses at a vesting price of 0.048 cents for ANY VWAP 20 day period over the next 18 and 36 months.
Basically, if the SP stays above 4.8 cents before spudding next month, they all get their bonuses automatically in 18 months and 3 years no matter how low the SP goes in the next 1 1/2 or 3 years. The 20 day $0.048 VWAP condition will have been met. A great reason to sit around for 3 years with no incentive to actually achieve anything amazing. Delays, problems, drama, sovereign risks will be of no great concern to these guys in relation to their performance rights. Their bonus shares will already be guaranteed.
I’m totally underwhelmed that the VWAP of $0.048 price of 28 November, 2022 was chosen as the precondition for awarding of the rights. Of all the days they could have chosen, why isn’t the lowest bar a surprise.
I would be much more impressed if they chose the $0.19 VWAP of 17 March, 2022. I would then have no problem giving away what would be approximately $2 million worth of bonuses to each of them if it was achieved.
As we all know, the current fair market, peer to peer comparison is 15-20 cents with upwards of 50-80 cents before appraisal apparently. To get lower than 0.048 cents VWAP over ANY 20 day period in the next 3 years would really take a big performance. Right?
There is no performance needed for these rights. In reality are just a free bonus for sticking around for 1/2 and 3 years, not for performing anything new, great or overseeing anything amazing of value for shareholders
MAY Price at posting:
8.0¢ Sentiment: Hold Disclosure: Held
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