"Your point being that Peter and Jethro voted in favour of Olegs ZEPO and vice versa?" - It goes far further than that - its friends, other insiders and proxy votes. This is not a DRO thing - it happens with all companies. It is extremely rare that attempts to vote down AGM resolutions are successful because everything is stacked against small shareholders.
"I've spoken to friends who trade and a big turn-off for them is when CEO's and Chairmen massively overpay themselves." I take exactly the same view. Their job is to make a loss making company succeed. CEOs like this are actively working against the company's interest. There are actually companies listed on the ASX where the CEO's salary is greater than the revenue of the whole company.
"What i find slightly unique about DRO is the initial founders are well and truely gone, with all of the initial shareholding dispersed into mostly retail hands." This is common. Rule number 1 if investing in IPOs is look at where is the money going? If listing is an exit strategy for venture capitalists run for the hills (often it is raising capital for expansion - if so they better be laying out a plan if the want my money). I always look at how much equity the CEO holds in a small company and how much they are paying themselves.
"ive never really had issue with the ZEPOs" I have a big issue with them. Why don't they call them shares? That's what they really are. It is an attempt to mislead. Big red flag for me. They also do not align with what shareholders experience.
"Im also unclear where you got 25m shares from?" The announcement says 24.5M options were exercised. I saw your later post. It maybe that some of these had strike prices that were not zero, but most did.
"Your comment about virtual certainty isnt quite correct. $50m wasn't within 60months, rather $50m within a 12 month period was." You misunderstood what I wrote here - the comment was they had 60 months to achieve $50 M within a year. It means that they have many many years to achieve the rolling 12 month target making it virtually certain that it would be achieved unless the company failed.
"Your reference to SP over 7 years is a bit bizarre." I disagree, management should be rewarded on long term performance not on one good year. This is a company that has lost $30 M so far. It is inappropriate to be handing out massive bonuses while it has never turned a profit. It's ok to hand out options with strike prices close to the SP, but not large numbers of shares.
What I would like CEOs to do is to align their bonuses with the claims they make to the market. If that were the case Oleg would not receive ZEPOs, he'd receive zippo.
DRO Price at posting:
26.5¢ Sentiment: Hold Disclosure: Not Held
(20min delay)