Time to review/reduce high Director payout

When the 2019 increase director fees by A$550K to A$1.3m (73% which was very substantial) was proposed, it was still acceptable to shareholders as the company saw record profits, good dividend, and high share price.

Given the current drastic covid impact on the company and in particular all shareholders whereby:

- share prices has dropped more than 80% from its high

- profit (exc forex) is almost negligible

- persistent low liquidity

- delay in secondary listing

- delay in dividend payout from last year profit by 6months and zero dividend for 1H2020

It is only right that the director takes responsibility and initiative to reduce director fees back to previous level. I cannot image directors continue enjoying the high payout at this time especially given the dismal performance of the company and stock price.

Current Director Fee of A$1.3m based is 20% of annualised net profit (A$3.3m excl FX gain). Also if you compare with Press Metal, the director fees is only RM548k (A$182K) and its market capital is A$7b (30x bigger than OMH), Jupiter director fees is A$337K (Mkt Cap A$500m), Lynas director fees is A$800K (MktCap is A$2b, 9x bigger than OMH).

It is only right that directors be taken to task until (1) the profitability returns (2) secondary listing goes through (3) market value of company recovers (4) dividend payment resumes) (5) liquidity of stock improves.

If you compare to progressive companies, the director/CEO payout has to be somewhat align with creation of shareholder values (profitability and market value), not when shareholder values are being decimated. Market value should be a key performance payout for CEO/Chairman.

Shareholders are happy to pay in millions (in the case of Tesla, in billions) when the CEO/directors interests are aligned and add significant market value to the company that benefits all shareholders (including founders and major shareholders).

Also, the secondary listing process is much delayed given the announcement in Oct 19. A typical secondary listing is 3-6 months while an IPO process is 9-12 months. Management needs to add pressure on IPO manager.

I sincerely believe the management/directors will take the above feedback positively as we ride through the crisis.