SKIN IN THE GAME

Executives can talk all they want, but the best vote of confidence is putting one's own money on the line just like outside investors.

IS THAT LTR?

‘We have skin in the game.
22% of the stock is owned by the leadership, almost entirely was bought on market!’

Watch from 4:12
Investor Webinar: Tony Ottaviano, Liontown Resources, 3 June 2021 - YouTube

You can tell our MD has free speech. Why? He himself is going to pay 50-54-58 cents in acquiring 7.5 million shares.

This company is 14 years in the making. It’s not an overnight success story. Management has sacrificed to build this company by paying themselves peanuts for years. You can check the annual reports in the last two years how they’ve worked their sweat out. During the covid-19, they’ve reduced the cash component of their fees and salaries to conserve cash.

This will give shareholders absolute confidence that LTR Management will achieve the best outcome for all. This is particularly important in the current phase of the journey when LTR will talk to the Big End of Town. When it's time to do deals. (can’t say that for most of the ASX stocks I’ve come across)



WHY SKIN IN THE GAME IS IMPORTANT
– some excerpts from investopedia

It is not unheard of for an executive to receive stock as compensation or to exercise stock options to buy a stock at a discount. What is less common is for an executive to risk their own money in the company that they work in. When an executive puts skin in the game, it is seen as a sign of good faith or a show of confidence in the future of the company, and it is seen as a positive sign by outside investors.
If Board of Directors and Key Management Personnel have also invested their own money in the investment vehicle, then prospective and existing investors will translate this move as a vote of confidence. Skin in the game—or insider ownership—also conveys to investors that the company will likely put its best foot forward to generate returns for its investors.
The idea behind executives putting their skin in the game is to ensure that corporations are managed by like-minded individuals who share a stake in the company.

Executives can talk all they want, but the best vote of confidence is putting one's own money on the line just like outside investors.'