Hi Tallplumber, no this clause only applies on a change of control in the voting power in the company, ie someone achieving 50% in voting power is the usual threshold I believe.
As I say, it’s quite a standard clause and occurs in most takeover situations.
The bigger general problem is perhaps the granting of generous performance bonuses in the first place, often for achieving mundane tasks such as completing feasibility studies etc that one would expect would be just an expected part of the job. But the granting of such bonuses is also standard remuneration practice and most shareholders likely don’t even read the announcements re bonuses and performance criteria, never mind bothering to vote against them.
And why wouldn’t he take them if scheme successful, he will have achieved a price that is above the performance criteria for the last lot of performance bonuses that shareholders approved at the last AGM.
Perhaps shareholders need to accept responsibility for the bonuses they approve?
ESS Price at posting:
50.0¢ Sentiment: None Disclosure: Held
