buyback - sending a message early, page-44

Berreta we've already discussed the options issue in previous threads, compared to other companies the remuneration of the management of CFE is average at highest, and most likely on the lower quartiles of payment. IIRC the total amount the most 10 important people (e.g. the 10 top highest paid) was something like 2.2 million, which includes Tony Sage.

Compare this to say the CEO of Transurban who is a glorified toll man, who earns something to the tune of 4.7 million by himself each year.

Also the skills required for a job in management for CFE are very specialized, noone actually runs mines or anything like that, so it's not like they can exactly switch to BHP to get a job there. These people are highly skilled at what they do and I don't see the point in short changing them (not like their paychecks are particularly heavy anyway) a few hundred thousand when in the long term we all expect to make 100% at least on our investment (the difference between asset values, built up by management, and the current share price, brought down by people who don't analyze the company enough).

Perhaps you'll see why I don't mind management issuing options for the year that TOTAL something like 1.5% of the company at slightly above the SP as a reward for the 70 million in profit last year (post-GFC hard to make deals environment anyone? Or was that just my bad dreams).