Ann: Change of Director's Interest Notice, page-6

An interesting aspect with a falling share price is that director holdings fall in value. For those companies who wish to remain compliant with Australian Shareholder Association (ASA) guidlines, this creates a dilema.



It takes quite of bit of picking through the remuneration report to work out actual base fees but from what I could glean one director is strongly compliant with guidlines whilst other directors would be in shortfall. The biggest shortfall is the subject of this announcement who, at current prices would need to acquire nearly half a million shares over the next couple of years to meet the five year target.

There is no regulation for this of course, it is just a guidline. However proxy groups such as the ASA are gaining more power in the way their members vote and strikes against remuneration reports are becoming more common. Gauging the company's communication with shareholders, corporate governence and ESG are very high priorities for Regis. Given this we should(?) expect to see further director purchases as they try to maintain those base targets.

By rights, directors should be able to trim shareholdings as the price rises as well. However, sales by directors are usually berated by shareholders.

In my opinion director motives should be aligned with shareholders and one of the best ways to recognise this is through their shareholdings. But arbitary benchmarks aren't actually a good guide. These can often easily be met via equity-based remuneration packages. Best to look for directors who put big licks of their own money on the line buying on market, i.e. what the rest of us do. These are the directors aligned with shareholders.