This is a letter that I have sent to the Company.
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To the Board of Directors of Andromeda Metals.
Good morning,
My name is Mxxxxxxx Fxxxxxxxxxx and I am a shareholder in Andromeda Metals (the Company) with a current holding of just over xxxxx million shares. I have been a shareholder since 2019.
Having read the 2021 Annual Report I have some serious concerns regarding the Remuneration Report.
I note that the Company engaged BDO Remuneration and Reward Ltd (BDO) "to review the existing KMP remuneration approach and determine appropriateness of current pay structures compared to ‘peers’ in the market."
I am very interested as a shareholder of the Company to read the report that was submitted by BDO to the Remuneration Committee. I am hoping that the Board of Management of the Company are open and transparent to their shareholders and will allow me to read a copy of the report.
I note under the heading "Summary of amounts paid to key management personnel" under point iv) that there is an increase in the base remuneration of the Non-Executive Chair from $65,000 to $110,000. I gather that this increase is due to the report submitted by BDO?
According to the Annual Report Remuneration Policy section it states: "BDO collated data and benchmarked the Company against peer companies in the mining and metals sector in a predominately single country jurisdiction, with similar market capitalisation."
I would be very interested to identify the time period in which BDO used to calculate the "market capitalisation" of the Company. We all know that the share price sky-rocketed into the mid-40 cent range before falling back down to 14 cents. This means a huge difference in market capitalisation.
Under the heading "Non-Executive Director Remuneration" it states; "The Non-Executive Chairman is entitled to receive $65,000 (2020: $65,000) per annum excluding statutory superannuation. In addition, consulting fees paid during the year to the Non-Executive Chairman were $72,700 (2020: $3,600)."
I would appreciate it if you could provide shareholders with details of exactly what 'consulting' work' was performed by Mr. Grivas to provide fees to the amount of $72,500.
Of the 11 meetings that were convened by the Company, how many of these were attended in-person and how many were conducted remotely?
Finally, who determines the amount of share-based payments are calculated and how are they calculated? Considering that the Company has not yet generated any revenue, the total remuneration package is excessive and needs to be fully un-packed and an explanation provided to shareholders.
Just to advise you I will be posting this letter to a share forum for other shareholders to view and comment on. In your response to my letter, can you detail whether or not I can publish your response on the same forum?
Kind Regards
(20min delay)