Ann: Executive Chairman Remuneration Update, page-9

"It should be viewed as a "bonus" rather than an Annual Payment."

I'm surprised Pedro you view this as a "bonus". I thought a bonus was something paid as an additional compensation that was a "reward" for achieving or exceeding specific goals- over and above what's required?

What goals were achieved to warrant this so called "bonus"?

Firstly, the Board made the appointment of TK as CEO based on, I assume, their assessment (knowing his background was not an operational one) that he had the right skill set to take the company through the development stage of Balama, and into production - they rewarded him accordingly. One of the most important functions of any Board is to select the right CEO.

Less than 2 years latter, in the middle of the crucial stage of development, with no successor immediately available to takeover, TK "resigns" with immediate effect because he doesn't have the required skill set, leaving a management gap that the chairman had to fill. Fund Managers, according to an article in The Australian at the time, called it a "ham-fisted and clumsy leadership change" and they certainly appear not happy in this article. http://www.theaustralian.com.au/bus...e/news-story/d178e915797373d515873aafb845d517

The SYR share price takes a considerable dive - $270 mil was wiped from the market cap (shareholder value).

A new CEO is engaged, with another very lucrative pay package that even SYR's staunchest supporter is said to be "unimpressed with" - described in this article ..............

Syrah largesse

Graphite developer Syrah Resources has found another way to upset some of its long-term backers.

Syrah last week announced it had promoted its general manager of sales and marketing, Shaun Verner, to managing director. The appointment ended a tumultuous period triggered by the sudden resignation of founding MD Tolga Kumova last October.

The latest upset is over the long-term incentive structure that will see Verner issued with
one million share options. The options can be exercised at a 30 per cent premium to its current trading level any time in the next three years.

Veteran Credit Suisse analyst Michael Slifirski wasn’t impressed, noting that the terms of the LTI implied the board believes an annual return of just over 9 per cent a year is adequate.

Most notably, should Syrah return to the $6.05-per-share level at which it raised $194 million last June, Verner’s LTI will represent a $1.8m bonus. That’s a bit rich for investors who took shares under that raising and have since seen the value of their investment roughly halve.

And as Slifirski noted, it seems an extravagant incentive for an internal candidate.

The analyst’s ECM brothers on the other side of the Credit Suisse “Chinese Wall” may not exactly be happy with him speaking out. Credit Suisse was the lead manager on the June raising.

http://www.theaustralian.com.au/bus...g/news-story/02e3af0072fcd324a3022c25951b98da

Undoubtedly the chairman deserves compensation for the extra time/expense he incurred - but I question whether this was needed? Why did they not allow TK to resume his position until a replacement was found?

IMHO, he should be paid on the basis of TK's salary for the duration of the the process - resignation until hand over.

There is nothing in this whole saga that warrants any special payment IMHO.

And the directors are quick to point out ... "This payment will not be paid out of the aggregate Director fee pool" - of course not