Innovative Pay structure idea10 Sep 2020 04:30
It is well-known that some AIM company Boards like to milk the shareholders.
Subject to the new Board agreeing with this, although it is for the shareholders to approve it, shareholders don;t usually get the chance to have a say.
Firstly, the salaries are halved.
Secondly, the salaries are paid in two chunks.
Half in cash and half in shares.
The shares number is specified at the beginning of the year and 8.333% of the total paid each month, in a tax-efficient manner which should hopefully save on National Insurance costs.
That way, if the share price goes up, the Directors are notionally getting more salary, and rewarded for their efforts
If the SP goes down, they are getting less reward, as it should be.
Any end of year bonus, to be approved by the shareholders, based on the INCREASE in Market cap, not the overall Market cap.
I want to end the ridiculous situation whereby the Directors approve each others' salaries with no input from the shareholders.
Please let me know your thoughts, and whether it should become the Law?
I have some contacts in fairly high places.