Ricky, I’m not sure why I am replying to your post. Maybe it’s because of your perseverance and the fact that whichever side of the fence you’re on, you are ‘all in’; maybe it’s because you’ve posted more information lately than in the last year with all the trade war speculation and rubbish of it being resolved from the ‘Donald’ and Mnuchin; maybe it’s because you keep referring to my posts; or maybe it’s because you ‘liked’ my recent posts, and deep down everybody likes to be ‘liked’. Whatever the reason, I’ll make you a deal, if you stop ‘following’ me on HC (so I know you’re no longer stalking me) I’ll do my best to simplify GV’s incentive remunerations!!
To begin with we will break them down to 2 sections. Short Term Incentive Rights (STI) and Long Term Incentive Rights (LTI).
Short Term Incentive Rights (STI)
STI’s are remunerations paid in Calender Years between 01 January and 31 December.
These are paid annually and are linked to annual achievement of goals (personal performance and corporate achievements).
Long Term Incentive Right (LTI) - Made up of Performance Rights and Retention Rights
LTI’s - Performance and Retention Rights are tied to fiscal years
Performance rights vest subject to the satisfying of performance.
Performance rights are linked to total share holder return over a 3 year performance periods.
These are equity based and linked to the share price performance and share holder interests.
Remuneration policies are based on aligning executive performance outcomes with share holders experience and total share holder return.
GV’s performance goals for Fiscal Year 19 (Calender Year 18) were
Sign 8 mtpa in binding MOUs with investment grade counterparties at Magnolia (80%) and sign 8 mtpa to sales and purchase agreement (SPA) or liquefaction tolling agreement (LTA)
Complete firm liquidity options available for immediate execution based on the level of success of Marketing activities (10%) and raising liquidity (minimum of $5 million) without dilution in overall company value
Sign term sheets with credible partners for development of a Bear Head pipeline solution (10%) and sign a full Project Development Agreement for Bear Head pipeline solution
GV’s performance goals for Fiscal Year 18 (Calender Year 17) were
Signing of 4 MTPA in binding offtake agreements with an investment grade counterparty for MLNG (50%) and signing 8 MTPA
Consistent with the level of offtake marketing success, develop a firm commitment for the next capital infusion to support LNGL through 2021 (30%) and bring in new funding of at least $100 million
GV’s performance goals for Fiscal Year 17 (Calender Year 16) were
Signing offtake agreement(s) with investment-grade counterparties
Obtain all remaining permitting for MLNG and BHLNG
Select a BHLNG gas path and progress agreement to the Board’s satisfaction for approximately 5 mtpa
Achieve financial cost reduction
Compliance (25%) Establish and implement the Corporate Leadership
GV’s actual remuneration equals the sum of his base pay, actual STI paid, and actual LTI vested during the fiscal period, valued at the share price on the respective vesting date(s). He has received LTI grants annually beginning in fiscal 2016. These Performance Rights and Retention Rights have vesting periods of three-years from grant date reflecting annual measurement periods on June 30 beginning in 2019.
In fiscal year 2018 GV was issued with 1,600,000 LTI shares valued at $0.59 which he vested recently. His total remuneration for fiscal year 2017 was $1,283,018.00 and for 2018 was $1,199,603.00.
According to Bloomberg recently, GV’s base salary is AU$846,667.00.
Due to underperformance he did not receive an STI payment for fiscal 2018.
GV recently vested his LTI rights and performance rights are linked to satisfying performance and share price performance. As you can see, the only thing he has achieved was obtaining remaining permits for Maggy and BH back in 2016, and as I have stated before, most of that work was done prior to his tenure. Share holders can form their own opinions on whether he deserves 1,600,000 incentive rights or not. In this case I agree with you!!.
On a different subject, our local weather forecaster has forecast rain here for the next week, which means I will be spending my mornings traversing the Martinsville cow paddocks looking for my favourite coffee ingredient, after which my life will be laying in the lap of the ‘goldtop’ and ‘blue moonie’ gods, so hopefully no one will be referring to my posts.
I would suggest a cup of my special brew to you, only you are both permanently barred from the ‘Cupboard’ and seem to have an intense nature which may not be synergistically compatible with my type of coffee.
The best advice I can give you is learn to relax!!!!
I’ve provided a link below so you can see what life in my world (inside the ‘Cupboard) is like, it’s even got a touch of old fashioned Louisiana at its core.
