I have had a few concerns since the takeover by this group and posted here a couple of times, but to no avail.
The report (p13) states that Directors hold 847.5 million shares in SAS, which have been either gifted when they came on board (not bought in) or performance shares etc. At 20c per share (obviously not if all were put on the market at once), that means a value of around $170million!! On top of the generous salaries and related party transactions.
The Auditors noted in relation to the $11mill of performance payments :
"We have identified this as a key audit matter as it involves significant assumptions made by Management in determining the probability of certain performance conditions being met and the significant amount of share based payments during the year."
Somebody tell me I'm reading that wrong, please....
The 3 main Directors hold just over 50% of the shares in the company (Commsec quote 18% each x 3) , largely from a back-door listing, so basically they get half of the benefits of any upside. Or to put it another way, we (shareholders) only see (less than) half of the upside benefits. I am all for Directors having a stake in a company but when you get half a company for very little, then that starts to get on the nose, for me. I know the company wouldn't be anywhere without them, but I think there is a line of fairness and corporate largesse worth pondering.
Does this happen with other micro-cap companies?
Anyway, do your own research.
Interested in any thoughts / feedback. Cheers
SAS Price at posting:
19.5¢ Sentiment: Hold Disclosure: Held
