Question: How can we afford to pay for another 4 directors? Why do we need them, especially inexperienced ones, and what can they contribute?
Director fees are paid from a pre determined and annually fixed “funds pool”.
Under our plan, Mark Smyth will be tasked with concentrating exclusively on critical CEO activities. He will attend board meetings but will not vote as a board representative member. This change will in fact free up $30,000 from the director pool and will go towards paying for almost 3 of the four nominated directors.
So, in effect, this change will only place minimal pressure on the funds pool available. Additionally, two of the directors will only hold their position for a one year period so after the first year there is no pressure on the pool.
We understand that the proposed directors are fresh at the task and have not performed as Public Company directors previously and that is one of the reasons they have insisted on a maximum remuneration of $12,000 per annum as opposed to the $30,000 that would have been awarded by default if these resolutions are not passed.
There is a lot of value in having a fresh and enthusiastic “new” director. As you are aware, and as you have seen historically with CVI, the comfortably established “professional” directors have a tendency over time to become stale and take a minimalist non-probing position. They often leave a CEO to do as he / she pleases. CVI shareholders have paid the price for this.
Whilst your nominees have not previously performed at a Public Company director level, they have good corporate experience and they are not encumbered with the stale and casual attitude that previous CVI directors have displayed. These nominees will take the role with a sense of responsibility and with enthusiasm. They will engender a culture of continual probing and vigilance, enveloped within an intense desire to serve the shareholders as they review the CEO agenda. They will not bow to traditional “professional director” protocols of casual carefree, non-probing rubber stamping.
The Director nominees offer a range of skills. We realise that we don't have mining experience, but offer honesty, and a good work ethic to communicate with shareholders and do whatever possible to help get Cityview back on track. Our experienced directors have in fact put us in a dreadful predicament to date, therefore we believe that we certainly can't make things any worse, and our intention is to make things a lot better, via transparency, honesty and providing the numbers on the board to ensure that votes are put through that deserve to be, not pushed passed a CEO friendly board who don't have the shareholders’ best interests at heart.
CVI Price at posting:
1.9¢ Sentiment: None Disclosure: Held
