Your kind of thinking appears contradicted to The voting and engagement guidelines of the ASA (page 7)
“14. Minimum shareholding requirement
ASA believes that non-executive directors should have alignment with shareholders through a meaningful equity investment in the company. Non-executive directors should not receive optionsor performance rights but can be paid board fees in the form of shares, preferably purchased onmarket, in lieu of cash. After three years on a board, a director should own or have invested at least one year’s worth of base cash fees in the company’s ordinary shares. Failure to establish a meaningful shareholding and alignment with investors after a full term on the board may lead to an “against” recommendation from ASA when the director is seeking re-election. There should be no equity ownership requirement for board candidates before they are elected a director or appointed to fill a casual vacancy.
Executive KMPs should be encouraged to have a meaningful equity investment in the company as this promotes the alignment between executive and shareholder interests. As a guideline, the CEO should own or have invested a minimum of 100% of his or her fixed annual remuneration (including vested incentive awards but excluding any unvested awards) in the company’s shares after five years of their appointment, with lower shareholding levels applying to the other executives”
Shareholders can reasonably expect their directors to comply with these guidelines. A conscientious leader would go beyond the minimum requirement if necessary. When SP declines sharply, it is advisable to keep an eye on whether directors’ share values remain complied with the minimum requirement.
As previously pointed out by@irregularverbs, buying-on-market is a common practice by many company directors to communicate with shareholders that they are confident in the company they lead. For example, NST directors’ recent on-market-purchase.
You are equally entitled to express your opinion and disagree with fellow posters. However, I found your comments lack coherence yet condescending.
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