In the last 12 months they ousted the Chief Technical Officer and the MD/Chief Executive Officer, put a fellow Director in the MD/CEO role with an increased $690k pa and 40-50M shares for targets that are all but guaranteed, rewarded the CFO for going along with it with 9M shares to go with his $400k pa salary, and have added two cronies ($90k pa to go to ~12 meetings a year). This very much sures up the Chairman's support base.
One could be excused for almost thinking that they are very much looking after each other.
Not a bad power play if you fell asleep at the wheel and made some bad decisions/calls as a Chairman with little skin in the game.
All goood for them as none of it is aligned to share price. They make bank while shareholders don't. Why isn't it alinged to share price? Surely they shouldn't have aproblem with this. What he has achieved is massive dilution for us, between all these shares he is handing out plus the very poor Xmas 23 capital raise (that the shorters gobbled up). > Dilution is the bank - its basically how he funds all this. Where does dilution and the funds it provides come from? Lost shareholder value.
How has this been allowed to happen? Simple, it's the fox looking after the hen house. The Chairman and Board drive all this. The new MD/CEO and ex Board member was put in the role and remunerated by the Remuneration and Nomination Committee. The Chairman is coincidentally Chair of the Remuneration and Nomination Committee. So likewise also responsible for rewarding the CFO for joining forces whilst the previous MD/CEO and CTO were removed. They removed the CTO just when they need expertise, and kept it very quiet. > Also responsible for the Chairman pay going up to $172k in 2023 - the year the company performed poorly and he ended it with destroying the company value with a 16c (13.5c effective) dilutive capital raise for peanuts that did not benefit shareholders (but benefitted shorters). As Chairman, he authorised this. Note it is not a full time position in the company that he is paid this $172k pa for. It's to oversee things like remuneration, nomnations, strategy, performance, capital raises, etc. This is done by meetings of which he attends 12-13 a year.
The vacated Board position then opened up the Board to be stacked with cronies. Who selects the other Board members? Chairman.
And just like that, voila the Chairman is now in a very secure position with higher pay, at great cost to shareholders when it's performed so poorly since joining in 2018. He has an MD/CEO, CFO, and Board who have all benefitted very handsomely thanks to him. All of the plans, vision, DFS, offtake strategy, Govt funding plans, etc was all already there by 2018. I've been an investor since before then, I know.
https://www.arultd.com/corporate/board/ Chairman Special responsibilities: Chairman of the Remuneration and Nomination Committee, Member of the Risk Management Committee and Member of the Sustainability Committee
Annual report (note this line hasn't changed for years - he isn't even writing a new report each year): The Company has worked hard over the financial year to advance the Nolans Project and with this in mind, the Remuneration and Nomination Committee have endeavoured to align executive remuneration with shareholder value.
The question needing to be asked, did they align executive reumeration with shareholder value? > What does your ARU share price say about your shareholder value...... and is this aligned to the executive remuneration we have seen?
Seems 2023 was a disaster because they were more focused on internal power plays, position security, remuneration, and the dilution bank instead of monitoring the project, progress, and budget.
(20min delay)
