The directors are about to take a big lead in the current accumulation stakes.
Next week's AGM resolutions 7-9 are asking shareholders to award all 3 directors shares in lieu of 100% of their modest cash salaries. This is not a typo.
I don't recall seeing directors take 100% in shares in lieu of wages before. If the share price hovers at the current level until June 30, it seems the directors are about to benefit from a serious windfall when half the shares will be allocated:
It's an interesting one. On the one hand, there's no denying the directors are taking a huge risk to boost their skin in the game for potentially zero reward because the vesting appears to be contingent on successful completion of both phase 2 trials. That's confidence.
The most eyebrow raising bit is they will still have to pay income tax as if it were cash income, so there's potentially a large actual cost to doing this.
Assuming they can get the tax deferred under Division 83A until the vesting period, there will still be income tax implications later according to chat GPT:
On the other hand, the timing seems all too convenient at bargain basement prices (taking advantage?), for it appears half the above shares will be allocated based on the VWAP on June 30.
Curious to hear others' thoughts on this one. Are you satisfied with how things are tracking or would you like to see some changes? Keen to get a sense of where other holders stand.
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