The share purchase plan. These are facts and information I received through listening to answers made during the meeting and talking to staff and directors after the meeting. I have tried not to put opinion in the dot points so everyone can have their own :)
• Staff members and directors have to pay the 1c upfront.
• The Shares are issued as fully paid ordinary shares so once they are issued on the payment of the 1c the staff member owes the rest of the money.
• It was stated that the money owed on the ESPP is considered an asset of the company and staff can be forced to pay the amounts owing if, for instance, an administrator was appointed.
• The plan is seen as an incentive for staff to stay. If they leave they have to cough up and when the 10 years rolls over they have to cough up.
• Far from being a lucrative giveaway the ESPP has worked well as an incentive and kept important staff over the long term.
• Up until now over all the ten year roll over periods it has also helped fund the company from staff paying their money without giving “easy money” to the staff.
• Staff are just as much underwater as other long term shareholders even with their 5% discount and many have paid a lot more for their shares than newer shareholders have from buying on market. They have multiyear commitment of share payments to this company.
• Staff and directors have shares that they have paid for or will have to pay for at prices far greater than the current offering. Some prices paid that were shared with me include 10c, 17c and one had also received shares in the early days at 70c.
• Options in an ESPP have been previously considered but have immediate tax issues that make them unattractive. (As I remember they Government has recently changed options to make them even more unattractive).
• Staff and directors are working hard to raise the future value of Austpac so their shares they already hold give them a profit. Their interests are very much in line with shareholders in that matter.
• Bringing consultants and paying all the legals etc to devise another ESPP is not a high priority of the company and they may consider that once they are profitable.
• The ASX/ASIC stipulate that shares bought by or issued to directors must be disclosed. Who other shares are issued to is not required to be disclosed. It is not a priority of the board to change the policy on extra disclosure or undertake the legal and other requirements to even consider changing that policy.
APG Price at posting:
4.9¢ Sentiment: None Disclosure: Held
