The point is, for Paul Greenwood to receive his first tranche of base long term incentive base of $2.5 Million, the shares have to be above $6.75 (minus dividends) on 30 June 2021. If the shares are above $6.75 + 8.5% compounded (minus dividends) each year up to 30 June 2021, hurdle price $8.62 (minus dividends), entitled to $818,000 in shares (if price is around the $8.62 mark). If the shares are above $6.75 + 11% compounded (minus dividends) each year up to 30 June 2021, hurdle price $9.23 (minus dividends), entitled to an additional $1.085 Million (if price is around the $9.23 mark).
Total possible Long Term Incentive payment is $2.5M + $0.818M + $1.085M = $4.403M. Only two years to go, but expect there to be some catch up in share price. I wouldn't be wanting to leave that much money on the table if I was in his shoes, would you?
The second tranche of Long Term incentive payment is the same as above. If 30 June 2021 is missed then 30 June 2022 CEO can receive $4.403M. I would definitely be targeting to receive the two incentive payments and be more than happy to pay $8.806M to someone who has increased value of the company by over $200M.
Have a great weekend!
Best wishes Lost
PAC Price at posting:
$4.53 Sentiment: Buy Disclosure: Held
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