So in the interests of starting a fresh thread, and just in case we have any new holders here (or old ones that slipped into a coma from boredom and lost their memory...) I thought I would refresh on our Executive Directors "Performance Rights"
Back in October 2021, shareholders were asked to vote on (and subsequently approved) the following resolution:
“That, subject to the passing of Resolution 5 for the purposes of Listing Rule 10.14 and for all other purposes, approval is given for the Company to issue 12,000,000 Performance Rights to David Deloub (or their nominee) under the Plan on the terms and conditions set out in the Explanatory Statement.”
Now, the Explanatory Statements provide further details here, and they are always a good read when you are voting at AGM's/EGM's etc:
"6.5 b) the maximum number of Incentive Performance Rights to be issued to David Deloub (or their nominee) is 12,000,000;
(c) the current total remuneration package for David Deloub is $150,000 comprising of salary of $136,364, a superannuation payment of $13,636. If the Incentive Performance Rights are issued, the total remuneration package of David Deloub will increase by $155,229 to $305,229, being the value of the Incentive Performance Rights (based on the Trinomial methodology)"
"The Company has chosen to grant the Incentive Performance Rights to David Deloub for the following reasons:
(i) the Incentive Performance Rights are unlisted, therefore the grant of the Incentive Performance Rights has no immediate dilutionary impact on Shareholders;
(ii)
the issue of Incentive Performance Rights to David Deloub will align his interests of with those of Shareholders;"
And here is the snapshot picture of the vesting/expiry conditions of the Perf Rights:
So as you can see, unfortunately for David (and for us long suffering shareholders) none of the tranches of shares have achieved the relevant Performance Hurdles, and hence why David owns no shares in the company.
Although in theory he should be motivated to deliver improved shareprice (as that is literally his only KPI), I personally think the shareprice trend over the following 2 years suggests this is not working. Should the hurdles be higher/lower? Should Executives have to retain a certain percentage of their remuneration in fully paid shares acquired personally for cash consideration? What else can be contemplated here to turn the ship around??
I will personally shout all readers (and David) several rounds of your drink of choice if all three of those hurdles are achieved, and those rights vest.
Come on, lets gets after this with some zest !!
