Hi Logzy,I enjoy reading your posts. We are all spinning our...

Hi Logzy,

I enjoy reading your posts. We are all spinning our wheels, offering good / funny / extreme speculations during a black out period.

I have expressed dissatisfaction (particularly the REM committee) that sets and approves pay, including JW’s package. I part company with some posters on the topic of “how much is fair pay”. I’ll explain myself before you think I’ve gone soft on JW.

My starting position is that MD job title comes with statutory obligations (and risks) that others do not bear. These “liabilities” are in force before any assessment of performance can begin.

I don’t think that acknowledging these “liabilities” means shareholders should tone down the intensity of questions about;
1. What is fair base pay, plus
2. How is performance bonus linked to shareholder return.

I think JW is probably within the acceptable range for base pay … but most shareholders have begun to see the pattern of bonus options repeatedly issued for LTIP (by the Board to the Board).

No biggie there … but the vesting conditions are linked to milestones that rely on hard work and ingenuity of the company executives (or technical people outside the company ie Strategic Metallurgy). The links between Board pay and performance are starting to become tenuous.

Attentive shareholders rightly pondered the basis on which non-executive board directors seek to reward themselves for executive performance. A red flag for me was that relevant REM questions in AGM were fielded by JW on behalf of the REM committee (that JW is not part of). I got the impression that JW bosses the Board via a weak Chair.

Also, JW only offered deflections and distractions in response to those earnest questions. That behavior was evasive and showed a level of disrespect that seemed unwarranted to me. I think the exasperated “boys club” comment that squeaked out from the floor was not far from the mark (it wasn’t me but I wish it was!).

Regardless of near term funding or no funding, the REM design is on the nose.

Go the slow ‘pus

AM74