Re the resolutions for the AGM on 6th October. I have some...

Re the resolutions for the AGM on 6th October. I have some concerns. This is my thoughts about some of the resolutions.

Resolution 1. Remuneration report
Part of this is the Employee Loan Plan (ELP). The ELP is a limited recourse interest free loan provided by the company to emplyees to purchase ELP shares in the company. The granting of the 3 year shares is based on performance hurdles. This performance is relative to a group of companies with similar market capitalisation. The thing is, if the comparitive group performs poorly, there is no incentive to company employees. They will get the incentive shares as long as the ISF performance is similar. The performance hurdles should be based on actual EPS growth and share price growth rather than comparison with a bunch of other businesses.

Resolution 9. Amendment of terms of options
The company wants to reduce the strike price of options granted to employees. Hello? I thought options were granted as an incentive to employees? i.e align interests of employees and shareholders. By reducing the price the incentive is being removed. Let's all feel the pain if the price drops - not just the shareholders!

Resolution 10. Approval of Mt Gary Michael Cohens Entitlements
This has the effect of continueing to pay short term and long term incentives for the remaining period of a financial year if Cohen leaves the company by resigning or given notice by the company. STIs and LTIs are an incentive for the employee to remain with the company. Why then would you want to remove this incentive by paying the person even if they don't stay with the company?

PS. These are my personal views only. I'm not a financial advisor. Do your own research.