Devils advocate is good. And the questions are reasonable. But they have a sales force in Europe through different mechanisms and a supply chain partner. Since Gavin is not involved in the day to day business I don't think it would make sense for him to be managing that, and it is also inconsistent with the role of an Executive Chairman as normally happens.
Investor relationships yes but ............ even that has not been particularly onerous this year if the reports we have had a right.
I honestly don't think you would find that he is involved in sales or in relationships with customers or prospects. In fact as I write this the thought horrifies me for a range of reasons that i am happy to enumerate if you wish. I vaguely remember something in a recent newsletter about someone being in Europe training sales people.
The questions i really wanted to pose in the paper were
is the role of Executive chairman really necessary?
does it add value at the level implied by the rem?
is there a more efficient and effective way of filling in any gaps in the capacity or capability of the CEO ?
In addition the costs associated with an EC and a CEO are considerable. If the EC role is necessary then that would normally imply that the CEO is not doing all the duties of a normal CEO, and then remuneration for the CEO would reflect that. I don't think any of us would question that Nick does what a CEO should be doing, and probably more...
These are important considerations especially if you consider Alexium's own constitution. For me it is always about value for money and the best way of meeting a set of objectives. The circumstances are different now from when the role was first introduced and in my view every effective organisation should regularly review its roles and structure rather than simply rolling them over.
Parsifal
AJX Price at posting:
61.0¢ Sentiment: Buy Disclosure: Held
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