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Ann: Annual Report to shareholders-TV2.AX, page-43

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  1. 592 Posts.
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    It appears to me that it is not based on forecast revenue or demonstrated actual revenue. It appears to be based on whether or not a deal is signed which is measurable.

    There is a proviso that " the forecast revenue in the 12 months after commercial launch of the deal is not less than $5,000,000" in order to qualify for the bonus.

    I imagine that if the deal turns out to exceed $5m or is close most SHs will be happy. If the deal results in revenue woefully short of the $5m figure it is unlikely to be repeated many times without consequences so it is in the best interests of all that the forecasts are accurate. IMO the risk of puffery and conflict of interest are fairly low. Whether or not it is a good look is another matter.
    Last edited by rugbysid: 04/10/16
 
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