Ann: FY22 Results, page-22

Resolution 1, then Resolution 9 and 10
Adoption of the Remuneration Report

Well, I would struggle to argue with the remuneration report HOWEVER it made for some interesting reading.

It was so generous for the CEO and CHAIRMAN to undertake salary sacrifice 5% for zero price options. Spare me!
as compared to >>> Non-Executive Directors' sacrifice 20% of their Board fees, excluding Committee fees, in return for zero price options in the Company(the subject of Resolution 11);

Gosh, thanks for stepping up CEO and Chairman.

But, it just gets better!
40% fixed.. ok
20% STI - I would argue that the house is on fire and this should be significantly more.
40% LTI - see above statement

Individual Objectives - i think the 20% on individual objectives is too high. Should be 15%, Alignment with employees increase to 15%. That way, if the individual is doing well, the evidence is there. That STI is too fluffy and can be easily manipulated.

Vesting 50% of the STI's a year after the grant date subject to continued employment is too short for executives. Should be 2 years minimum.

"LTI is only paid to KMPs if the 5-day VWAP after the release of the FY25 Annual Report exceeds 34 cents".... might not need to read this section then. But nice to see they have NOT set the benchmark too high, like trying to demonstrate they can go even to the SP of 1 year ago where is was in the 40c range. I could suggest looking back the the start of last FY but it just makes me feel miserable (80c range). God forbid going further back.


I just don't see this as being acceptable at all.
The chairman and CEO are being rewarded for marginally uplifting the company to a point where it is significantly lower than the start of the previous FY. It is lining their pockets now and WAY into the future at the expense of the company.

Now, I did mention on a previous post about thinking the Chairman and CEO probably did ok in last FY. Well, seems they did better than ok.
Today the company has a market cap of $42.52M.


FY21
Executive Directors:
Johannes Risseeuw $683,315
Christian Damstra $675,461

So, collectively they got more that $1.3M for taking the share price from over 80C (after an appalling previous performance) to under 20c.
All the while increasing their grip on the company by options and shares issuing.

My dog could probably do better than that!


I say absolutely NO to resolution 9 and 10