A quick question to those long term RES shareholders in relation to note 6(a) in the Annual Report.
As I read it, shareholders agreed to offer PJ and SM a number of options to incentive them to work hard (as if pay alone is not enough).
Given that the options were not going to finish 'in-the-money' on exercise date they duly cancelled these and issued both PJ and SM with 4.5 mill 'Performance Shares'.
At the current SP this equates to $2.34 mill. It also equates to ~3% of the company (4.5mill / 154 mill shares).
What are peoples thoughts on this?
In principle these sorts of dilutions in favour of exec's is a flag NOT to invest in a company as it is a blatant sign of executives working in their best interests ahead of shareholders.
Surely if the SP didn't finish high enough for executives to 'earn' their options then tough-luck, work harder next time to get the SP higher.
Cheers John
RES Price at posting:
52.5¢ Sentiment: None Disclosure: Not Held
