"They are simply being paid for performance" The board is paying...

"They are simply being paid for performance"

The board is paying remuneration vastly out of proportion to the company's current stage and level of performance:

• Dr Vornig's cash salary is over $800k. Compare this to CEO remuneration for similar companies. Find some CEOs who are receiving this kind of base salary and have a look at the kinds of revenue and profit levels that typically have to be achieved to get this kind of base salary.
• In addition to the base salary, Dr Vornig was gifted $2.3 million in absolutely free shares (annual report, page 22), which he then sold on market.
• The independent, non-executive board memers (Peter James, Jethro Marks) split a further $1.4 million in free shares, which they also sold on market in coordination with Dr Vornig's selling.

Keep in mind that this company has never made a profit, never paid a cent in dividends. All this money is coming directly from shareholders.

Over the last three years sales have grown from $5m to $55m, but the share price has increased by only 3.5 times. Why is the market so subdued about this stock? Do you think it's because it's "overlooked" by all the analysts scouring the market every day for undervalued stocks? This is a hot sector. It's being monitored closely by all the majors. The reason why long term holders are getting only a fraction of the return due is that the market can see that these men have their mouths firmly clamped around the shareholders teats, sucking for all they're worth.

A vote against the remuneration report, and against reelection of Jethro Marks are the only things that shareholders can do about the situation.