5% of the company as a Performance Right? Serious? Current ARR is already 8.3m, so the first criteria isn't that big of a stretch (especially when it was communicated only a couple of months ago that we're targeting 20-25m within 3 years).
80% of $12m is $9.6m, which is only a 15% growth in ARR from where we are now. Hitting that 80% threshold is way too easy of a benchmark in my opinion and to hit the stretch target of 125% ($15m ARR), we're giving away 2.3% of the company to him? On a metric that can easily be manipulated (school's business, firesale the watches to bring subscribers in, etc.)? That's outrageous
Same with the Positive Free Cash Flow. Giving 1.5% of the company for ensuring the company is Free Cash Flow positive? Running down the inventory can skew that metric...
And another 0.77% for delivering on the strategic objectives... right...
I don't have a problem with Performance Rights influencing LONG TERM interests of the company, but these metrics are very short term and there's a HUGE payout for hitting very easy targets.
Who's on the Rem committee that agreed to these?!?!?
SPA Price at posting:
2.5¢ Sentiment: Hold Disclosure: Held
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