This is in no way personal and I’m sure MM and the rest of the board are lovely, intelligent and hardworking people. Regardless, in my view it is time for some of them to go.
Several of our senior executives/board members/managers etc have been at Biotron for 15+ years. It is just human nature for people to become stale after this length of time. Things become too cozy and cushy when you continue to receive a huge salary year after year.
MM received a package worth $351,260 for the year ended 30 June 2019. I cannot see how on earth this package can be justified. There are also long-term directors who have received significant packages for well in excess of a decade. The difficulty with older members of our leadership team is that if Biotron eventually does fail, it will have little impact on their career or future job prospects as many of them will sail off into retirement.
I see no reason we cannot find a young, hungry, driven, suitably qualified and capable person who can take over managing director duties. We could pay them a very modest salary (e.g. $80k) but seriously load them up with sensibly structured options. If Biotron succeeds they will become very rich and may never need to work again. If this does happen shareholders will of course also benefit greatly too.
I believe there would be many young, hungry, driven, suitably qualified and capable people that would jump at the chance of being able to add “Managing Director” to their CV, regardless of such a modest salary. The benefit for shareholders would be as follows:
1.If Biotron does fail, this may have a tangible impact on their future career prospects. On the flip side, if Biotron succeeds they will become very rich. This ensures there is a real incentive for the person to do everything they can to ensure success.
2.If the person decides to leave Biotron, this sends shareholders and the market important information. The person must feel there is no serious prospect of success for Biotron and they would rather look elsewhere for better opportunities (since we would only be paying them a very modest salary). If they thought Biotron had a real chance of success, they would be prepared to take a risk and stay to take advantage of the options that could make them very rich. If you are being paid $300k+ (like MM), I imagine many people would be quite happy to just coast along whether Biotron had a realistic chance of success or not.
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