BOUQUETTo Nomads executive remuneration committee for creating...

BOUQUET

To Nomads executive remuneration committee for creating twin hurdles in the new Managing Directors Long Term Incentive (LTI) grants.

From a shareholder's glance, what requires tweaking is

Where Nomads Total Shareholder Return (TSR) is
EQUAL to the TSR of the 50th percentile of the
ASX 300 Al, Mr Bourke may exercise 25% of any
vested options.

This means that the other 50% of comparators (ASX 300 Accumulation Index [ ASX 300 Al ] ) are above the company, Nomad. Also means that the shareholders are paying an incentive (of 25% of the total 4 million options available) to be beaten by 50% of Nomads ASX 300 competitors.

Maybe tweak to 51st and exercise 10% as an incentive, aligning with shareholders interests

Where Nomads Total Shareholder Return (TSR) is
equal to the TSR of the 51st percentile of the
ASX 300 Al, Mr Bourke may exercise 10% of any
vested options.

My answer in advance, to whom that think its being pedantic in requiring performance to reach at least the 51st percentile before awards vest, is to query why ( keeping in mind this is an incentive for "outperformance" or "superior" performance when measured against the performance of a comparator group), and if it is so insignificant then why not simply make the change.

And remember Long Term Incentives awards to executives are made for relative outperformance whereas shareholders' TSR performance is absolute , i.e. if the share price drops executives still get paid a Fixed Annual Return, in this case $500,000 and you, the shareholder can work out your loss on the share price.

Again, BOUQUET to Nomads exec. remun. committee for taking steps to align with shareholders interests. Thumbs up.