haircut for you, not for me.

This post covers one of the "cons" in my earlier post, "feathering the nest" and fairly important.

In the broader picture, the company IMO is being treated as if it's a larger company than it really is and top heavy for starters.

Let's look at an example, Ausdrill to be fair to VDM.
Ausdrill are profitable and a much larger company
(about 20 times larger by mkt cap)

2010 Remuneration for Key Management
Ausdrill - ~3.6M
VDM - ~4.2M

2010 was a failure and overpaying didn't work.
Now there are job losses and cut backs.
Do the cut backs apply all round, well NO!

CEO, VDM
2010 Base - $231,764 , Total Package $440,123
2011 Base - $550,000, Total Package up to $962,000 (bonus dependent)

The base package is a whopping increase of 230% !!
You need to pick your time for milking shareholders, this isn't the time and certainly not leading by example.

On the plus side there are conditions to bring the salary up to the ridiculous 960k mark, that include having the company turn a profit, not a loss.

I would have thought that the increase in salary of 230% was too much too pay for someone to carry out their fundamental role, let alone supply incentives for what they should already be setting out to achieve.

There we have it, a classic example of "feathering the nest 101".

The SP has been sent down the toilet, workers out the door and haircuts are for everyone, well nearly everyone.
Mav