what share holders voted on was a refresh of the terms to the existing Employee Share Incentive Plan (although i voted against it, the majority obviously had it). share holders didn't vote on whether to grant freebie options with a zero exercise price to executives in circumstances where key milestones havent been met (DFS), because there was no such voting offered
the way i understand it is that the board has full discretion in awarding options to whomever they want from ctm. there is nothing stopping them from issuing up to 15% of the company in free options with a zero exercise price (effectively freebie options).
what key performance indicators they use is up to them i guess. to award free options when the company's share price is tanking off the back of repeated misses on key milestones, is a mystery to me and no doubt to many others including many long term share holders who have openly said on this forum that they have deserted the company and sold out
imho the board is divorced from reality and needs to consider things from our perspective (long term share holders). step into our shoes. from where us long term shareholders stand, ctm has repeatedly missed delivering an updated MRE last year and has repeatedly missed delivering a DFS to the extent that the DFS will be over a year late at a minimum imho
the company raised $75m last year to get things done, however the money is almost gone and we have no DFS to show for it (and won't have a DFS for at least another year imho). this means more money will be raised shortly thus diluting us long term share holders more than necessary because the company's delays have resulted in the share price tanking imho
everybody is being over compensated yet share holders are not seeing any tangible results via added shareholder wealth (share price growth). ctm's price has instead been declining off the back of the company's repeated delays imho. we are not against incentives when the actual share price rises due to the company performing! we want results within stated timelines and dont want to hear about excuses. be stronger than your excuses. we are paying top dollar for things to get done by the time they are said to get done. getting to production is not an open ended exercise! there is a window of opportunity which is rapidly closing. the longer it takes, the more pain long term shareholders experience via decreased wealth because of unnecessary dilution). accordingly, things need to track close to schedule and planning and organisation must be on point. no its not easy, but thats why everyone is paid handsomely, in order to rise above and beyond daily obstacles and challenges to get things done. everyone is totally and utterly replaceable if they are not meeting expectations, and the mantra ought to be next man or woman up
in this context, why are freebie options with no exercise price being issued? its not like key milestones are being met which has translated into an increase in share holder wealth. so why give out freebie options with zero exercise price? look at the poor share price performance! why should employees benefit when share holders' wealth is going backwards? employees maintain and increase their holdings whilst long term shareholders get diluted. how is that fair? especially when key milestones are repeatedly missed?
to all fellow share holder (big and small), consider your votes carefully at the upcoming AGM
CTM Price at posting:
90.0¢ Sentiment: Hold Disclosure: Held
(20min delay)