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Agreed which is why I was warning of how the company may be restructured over the coming months. To clarify I'm still long on these shares until further notice however, for anybody who has bought and sold company's before you will know that management buyouts are a real possibility in this instance. The deal can theoretically be structured using the tools they currently have to facilitate this.
Oh so his backhander is only £225000! Makes me feel better /sarc
"Francis, who was named CEO at the end of April after being brought in on an interim basis in February, will invest £150,000 of the payout in SIG shares as part of the deal. The company said this would see him “further aligning himself with shareholder interests”. The payment is outside his standard remuneration and will have to be approved by shareholders at a general meeting on 9 July. If the resolution is not passed he will not buy any shares in the new capital raising exercise"
"If the resolution is not passed he will not buy any shares in the new capital raising exercise"
Yea looks like hes “further aligning himself with shareholder interests” Smh! More like aligning his pockets in times when others are suffering, this backhander more than makes up for his so called paycut in April!
Dont get me wrong, if in a years time he has turned things around then by all means give him a bonus but this just stinks!
https://www.constructionnews.co.uk/financial/sig-boss-set-for-375000-reward-after-four-months-work-22-06-2020/
More info above - The payment is conditional on £150k being invested into SIG shares as part of the deal.
Lenlenlen :- "As far as my research has shown me, he's an incredibly talented CEO in bringing companies out of the sh*t. People seem to be ignoring the fact that he is going to put a big percentage of this into buying company shares, which can't go unnoticed - he's putting his money where his mouth is immediately."
No hes not, hes using part of his big payout to buy shares and it literally states he wont buy any shares if he doesn't get this payout! Its borderline bribery! If he was "Putting his money where his mouth is" He would buy shares even if he doesn't get his backhander! Why not invest all of it to show confidence? While the company struggles with Covid he not only wants his paypacket but a big fat bonus on top, yea no thanks! Voted down!
As far as my research has shown me, he's an incredibly talented CEO in bringing companies out of the sh*t. People seem to be ignoring the fact that he is going to put a big percentage of this into buying company shares, which can't go unnoticed - he's putting his money where his mouth is immediately.
From a Sky article Nov 2018:
Unveiling its new chief executive, a statement from the company said: "Since 2005, Steve has completed four successful operational turnarounds of multi-site, international businesses with revenues ranging from £2bn to £200m.
"Steve was recently CEO of Tulip Ltd, the UK's largest integrated farmer and producer of pork, where he led the rapid return from significant losses, rebuilt the management team and completed a major growth acquisition."
Looks like he got proper shafted with the Patisserie Valerie fiasco. On previous appointments he has done a traffic job and has a proven track record. I am a little surprised that there is not a more positive outlook for Sig out there. Maybe it has to be proof in the cooking before we see a reasonable rise.
Agree - he had made a great impression and looks well placed to get this business through the crisis. It seems the objection is more procedural than anything ("one-off payments" not being regular). I would have thought a one off payment is highly appropriate for someone who has kept the business going (and thereby saved 000's of jobs).
It will turn out to be money well spent if he gets the share price back above 60p. I think we are looking good for that so he gets my vote
I have voted against it as I think the sum of money is pretty obscene for someone so new to the role. These awards should be based on increased company profitability and shareholder value.
I cannot wait to see the outcome of this, if it gets voted down it will be interesting to see what comments they come out with but I have a strange feeling there will be enough votes to get it passed!
ISS, the world’s largest proxy adviser, said one-off payments are considered poor practice in the UK. It added that while a portion of the payment is expected to be “invested in shares under the capital raise, the remaining amount is to be remitted in cash”.
“This would appear to clash with the cash control measures currently in place due to the company's financial condition and the prolonged impact of Covid-19,” it said.
SIG faces shareholder revolt over chief’s one-off payout
Proposed £375,000 payment for ‘compelling new strategy’ despite stock price tumble
SIG supplies building materials such as roofing and insulation. The company issued a profit warning in January © PA
UK building materials group SIG is on course for a shareholder rebellion next week after proposing a one-off £375,000 payment for its chief executive despite a large fall in its share price.
Three big investors and four shareholder advisory groups have raised concerns about the payment, which SIG has said will only be made with shareholder approval, ahead of an extraordinary general meeting next week.
The company proposed the payment for Steve Francis, who joined SIG in February as interim chief executive, after he developed a “compelling new strategy” including a £165m capital raising backed by private equity investor CD&R.
But proxy advisers Institutional Shareholder Services, Glass Lewis and Pirc have recommended shareholders vote against it, while the Investment Association’s Ivis voting service, which is widely used by big UK investors, has “red flagged” the payment, its highest level of warning.
One UK asset manager said the payout was unjustified, adding that while the share price had recovered somewhat it was still half of its level in late February. “It's definitely an against from us. I suspect this might actually get voted down,” he added.
A top 15 shareholder said he would vote against the payout, which was also conditional on the completion of SIG’s capital raising.
Recommended
The FT ViewThe editorial board
It is too soon to restore CEOs to pre-Covid pay
A revolt would be a big blow to the company. SIG, which is part of the FTSE 250, said it was “firmly of the view that this payment is fully justified” and that it would not cancel the vote.
Mr Francis took charge after the company’s board ousted its former chief executive and chief financial officer in the wake of a profit warning in January that knocked more than 20 per cent off its share price. Since his appointment, the share price has fallen further from 65.96 to 30.00.
The proposed payout to Mr Francis — who was previously drafted in to restructure Patisserie Valerie after an accounting fraud — is a vote of confidence in his ability to turn SIG around and “a bit of a sweetener for having got through the [capital] raise,” said Aynsley Lammin, an analyst at Canaccord Genuity.
Pirc said that the payment “appears to be associated with his involvement in the capital raise, and his continued employment”, but argued these functions were a normal part of the CEO’s job.
Glass Lewis said it was “sceptical of any type of extra bonus that rewards individuals for actions that we view as intrinsic to an executive's duties”.
ISS, the world’s larges
https://www.ft.com/content/d4261342-1547-46ed-a0dc-f4733c21a591
https://www.ft.com/content/d4261342-1547-46ed-a0dc-f4733c21a591
Wow really, never, I’m so knocked of my feet. Blimey. ??
Hello ... what are your thoughts about buying the allocated shares. I’ll have to admit I’m humming and harring. I sadly wasn’t savvy enough to forward sell when the rns came out.