Relaxation & Fun, page-70

@Verily1

I was hoping you could help me with a dilemma I have. I keep seeing @Protagonist post about S Noons package and the fact that he should in his/her words "forsake some of the $650K to keep BML afloat and remain solvent. My confusion stems from a number of factors but the first is that the package is not quantified until the end of the next financial year, so how does Simon forsake an unknown entity? Yes he can offer to take a salary cut on his $320K salary.

We know that Simons renumeration is as per screen shot 1 below $320K plus superannuation. But, the whole package was not known at the end of the 2022FY as it was not stated. We also know that Simons package calculated at the end of 2023 FY was $643K. as per screen shot 2 below which included $84K for the vesting of 260,000 performance rights for completing the DFS. Now I know that this package is made up of Renumeration (Salary plus super) and then shares (from either options or performance rights that have vested), leave entitlements carried forward (non monetary) and options/performance rights.

Well my next confusion is the highlighted 2022 renumeration in screen shot 2. I am at a loss how Simon who's 2022 Salary which was reported in 2022 as $320K plus superannuation in screen shots 3 and 4 was reported as package only being worth $317K. How does this happen? Basic maths would have most arrive at the corrrect conclusion that he should have earned $320K plus $27.5K super = $347.5K

But then I notice that there was a $55.34K negative adjustment to his package. Then I saw the reason for this adjustment. "During the year Share Based Payment expenses previously recognised has been reversed due to the Performance rights not vesting". This would indicate that the monetary value assigned each FY against Performance rights are as you stated, an accounting transaction.

But if the case then why was @Protagonist belittling your accounting qualifications with his supposed superior knowledge of what each accounting entry is on the said salary package. Surely @Protagonist would not be that egotistical to argue with an accountant about a subject that they appear to have zero knowledge on the subject!

So to put things into perspective. S Noon's renumeration is $347.5K. The so called package includes accounting transactions for performance rights assuming they will vest before expiry. If they fail to vest then an accounting entry will occur in the 2028FY annual report.

The total value of Simons performance rights is $740K (4.84M performance rights). They all expire in October 2027 and have the following vesting criteria;

480K - BML must trade for 10 trading days above 50c.
2M - BML must trade for 10 trading days above 60c
2.4M - BML must trade for 10 days above 70c OR reach steady state production.

So I think this debunks the misinformation being peddled by none other but that sensationalist @Protagonist. A package is a possible renumeration if all KPI's are met. The base renumeration is the salary plus superannuation and Simons base salary is $320K. Now should Simon take a paycut? Well that's up to everyone to form their own opinion. But a CEO salary of $320K is at the lower end of the range when compared to peers with DFS.

IVR Exec Director $350K base salary ($762K package)
SVL Exec Director $409K base salary ($450K package)

2023 Annual Report - Screen Shot 1


2023 Annual Report - Screen Shot 2




2022 Annual Report - Screen Shot 3



2022 Annual Report - Screen Shot 4