Those performance rights you refer to relate to the CEOs performance in 2023 and 2024 as measured against a suite of benchmarks. Vesting of the performance rights in 2024 either fully, partially, or not at all will depend on the extent to which the benchmarks are met. In that regard, it is instructive to note that previous performance rights allocated to the CEO, lapsed unvested quite recently because attaching performance benchmarks were not met.
After examining the various performance hurdles applicable to the current performance rights for the CEO, I am comfortable that even if the performance benchmarks are achieved only partially by 2024, that would reflect some pretty decent results by the company.
It is the service rights that cause me more concern. They are supposed to reflect a fairly spurious argument (IMHO) that while the CEO's salary is acceptable in the type of sector in which Spectur operates, he is over-qualified for the job and that those qualifications and experience (which might draw a substantially higher salary in the type of sector from which he was drawn) are not reflected in the cash component of his current salary. In simple terms, the service rights are supposed to incentivize the CEO by further linking his salary to the future fortunes of the company. It would seem that some others also took a dim view of the service rights resolution and its underlying logic at the recent AGM, because it nearly got bowled over at that meeting. However, the resolution was in fact passed by a narrow margin and for me it is now water under the bridge.
zeno9
SP3 Price at posting:
3.1¢ Sentiment: Buy Disclosure: Held
