Great posts mate. And it is exactly this difference in...

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nashezz

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21/09/24

06:21

Post #: 75774495
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Originally posted by BerserkWarrior ↑

"A rats about holders"? They arguably don't (or not enough anyway) because their incentive plan isn't predicated on/linked to the share price. Ultimately, they have to be good operators for the share price to have the potential to rise. Fine. The problem to date is the BoD aren't stupid- they are looking after themselves before shareholders. They're happy to link incentive KPI's to operational markers because they can control those to a large degree, the share price they can't but that's near useless for shareholders in a practical sense ergo the languishing share price. Munger famously stated “show me the incentive and I'll show you the outcome.” That's what we've gotten so far & will into the future until shareholders wake up and rethink incentive structures.

I do agree with you, shareholders were foolhardy in voting for the share pool without linking it in any way to shareholder reward. By way of contrast to BRK I'm invested in a soon to be mining microcap where the executive brought the project to the ASX, put up a shite load of their own capital at market prices (no 'non recourse company loans', BS options/targets) & collectively own a very large chunk of the company that they funded themselves. They have recently released a performance plan that is admirable in its reach of future targets....all based only on future share prices....not tons mined/delivered etc. That's aligning management with shareholders. Contrast that with what's here.

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Great posts mate. And it is exactly this difference in management styles and alignment that sees BRK not rewaded yet in spite of delivering operationally.

BRK Price at posting: 1.0¢ Sentiment: Buy Disclosure: Held
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