It seems strange yet understandable that the RFG share price drops 3.43% on an average RFG volume day and no comment on HC.
This tells me the keen RFG punters have left the building and this stock is destined to become a day traders delight and thereupon lose its investment grade status.
What a pity as RFG had a history of growing EPS and operating smartly.
The new LTI arrangements for the new MD say it all. Collect $500k in LTI benefits by just returning the RFG P/E ratio to what it was on the day he was appointed. MD Andre Nell does not have to exert himself and bother with growing the EPS.
For comparison look at the LTI arrangements for Adair's new MD. Its based on a combination of EPS and LFL store sales growth. A simple and hugely relevant duo of measures that truly aligns with shareholder interests.
The Chairman of RFG should hang his head in shame at the proposed LTI proposal for Andre Nell and I hope it is voted down at the upcoming AGM.
RFG Price at posting:
$4.50 Sentiment: None Disclosure: Held
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