Call from Vested Equities today?, page-170

Yes admittedly there have been times where I look at those smiling faces of upper management in the company blurbs and just see a bloated wages cheque signed in the name of underachievement and the prime reason for three CR’s in the last nine months. I mean, there are quite a lot of them. Parading around and getting paid like a company actually achieving milestones and sales revenue. Certainly in other countries executive management of speculative miners or biotechs get a commensurate wage aligned with shareholder wealth creation, not here though, perhaps a remnant of a bygone era?

And the reason they don’t put the metaphorical hand in the pocket and purchase additional shares is that they think “I’m not paying for my own wages, bugger that” even with the knowledge that it may be viewed by the market as a positive signal.

But then I think hey, maybe I’m looking at this all wrong and my ‘dummy spit’ is just a necessary side effect of owning shares in these types of companies. Maybe a more accurate measure, instead of director buying is the ‘director quit indicator’. Sure these guys have ‘feathered the nest’ with generous share entitlements almost eliminating the need to use personal funds beyond the purpose of market signalling. However the fact that not one of them has quit, in fact more positions indeed have been added may be a firmer indicator that these guys feel they’re a genuine chance of pulling this off, thus making those shares that they reward themselves with very valuable. I mean if, after this CR, with many battered and bruised holders reaching in ‘for one last dance’ they deliver nothing, it would amount to a kind of company suicide. With almost 4 billion shares on issue consolidation is virtually assured, with nothing to leverage it against their own share value gets annihilated along with everyone else’s.