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clock Created with Sketch. 04/10/18
18:09
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Originally posted by Jean Luc Bergman
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Look at the effect on the share price subsequent to the CEO making a sell that considering her salary never would have had to make considering her ability to get a loan for present financial arrangements. The criticism is more than warranted. She wiped off over a billion dollars in shareholder equity due to personal financial commitments at less than the $5 million mark. It is absolutely an issue relating to fundamentals, you only have to look at the downgrade by Bell Potter to appreciate that this is something taken very seriously by institutional investors. Are we just going to pretend that the CEO somehow wasn't aware of this? Anyone who has dealt with stocks for a reasonable amount of time understands the effect of issues like this on share price. I've managed a relatively significant amount of money in stocks for over 6 years and have a degree in corporate finance; its not on the same magnitude of a mistake and I'm sure the company has a great future, but I haven't seen the same reckless thoughtlessness from management of major Australian companies outside of Retail Food group and Slater Gordon. Its fair to have high standards for company directors, and this absolute bottom of the barrel stuff.
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First the board should show her the door. Secondly the board should take the blame for allowing her to sell immediately after her appointment. This is a good lesson for the board. I found it unbelievable that the board didn't place a condition of sell and probationary period of sell in her job contract. How's ignorant they're?
(20min delay)