Capman,AGM's share based remuneration is quite out of the...

Capman,

AGM's share based remuneration is quite out of the ordinary imo, and certainly defies simple comparison to ALB or MCR.

Several points stand out:
1) AGM issues it's options predominantly to two directors, AHR and Deitz. These two recieved 7.1 mm of the 9.1 mm issued in 2006.
2) AGM provides interest free loans to the directors to convert their options, and at the end of 2006 these loans the the above two directors amounted to $5.7mm. This is far from the norm.

We previously noted that MCR had not issued any options to directors in the past two years. It's 2006 issue was to other employees.

Wrt ALB I note that the only options issued to directors in 2005, 2006 or 2007 were 1.2mm in 2006 and again in 2007 to the managing director as part of his remuneration. As his cash base is relatively low at $180k, I consider this reasonable. Especially considering he is not on the remuneration committee, and no options were given to other 6 directors. Hardly a case of issuing oneself options.

The recent 1.75mm of options issued by ALB included the above plus 550k issued to a number of employees in the recent notice.

The more I look into AGMs arrangements for looking after AHR and Deitz, the less I like about it. In contrast I find ALB and MCR to have clean arrangements with the majority of their boards not even recieving options in recent years.

EL