FYI23 Nov 2018 07:15
This is from PJ1 on another board and is in answer to and email:
I'll start with perhaps the most important bit that Investors want to hear. Bearing in mind Directors are always positive, however it has come from a NED who offers a little more balance as in effect they are partly there to check on the Executive Directors.
''The Board is confident that the project value remains undiminished and we are in the end game of monetising the Project.''
On to Director remuneration and options. Most of this is probably known and in the annual report if you have the experience to extrapolate it.
1)''The cash amount actually paid out in the 6 year period is not £4.8 m but approximately £2.4 m, an average of £400,000 per year for the entire board. This included not just Christopher, but Duncan Wilson who was paid as CEO of the Travel Business, a separate business to the Project. £1.4m was directors’ fees converted along the way into shares and 1p options, which are to all intents and purposes the same thing, by individual members of the Board.''
''This equity/1p options was purchased at an average of 9p per share, so the directors have, based on the current share price, also experienced significant losses along with other shareholders''
''The majority of options owned by the directors are 1p options which were purchased by the directors as exchange of salary at an average of 9p plus per option. They are in effect equity and characterised as options for tax reasons. It would be entirely unfair to time- expire these as they are, to all intents and purposes, equity. As stated above, the directors have in any case experienced significant losses on those options.''
Two of the three non-executive directors, Tim Hill and Grahame Cook have not been paid any cash emoluments since appointed as non-executive directors. I admit I was not aware of this.
2)''The share based payments are not cash payments but theoretical amounts calculated by the accountants in accordance with accounting standards to reflect the existence of an achievement based incentive scheme. The vast majority of these rewards will not kick in due to the failure to achieve time limited goals.''
3)Quite a defence of CE. ''Christopher has been assiduous in the extreme (most would have given up or left the Company) not just in pushing the Project forward as hard as possible but in raising money at regular intervals to ensure the continued survival of the company. Under other leadership, the company would have gone under years ago. He has also taken a 50% pay cut in 2018 to £120,000 following the sale of the Travel Division, which will remain in place until the Project is monetised.'' Each Investor will have to draw their own conclusions.
4)''You mention the market cap of £7m, but the directors’ assessment of the value of the Project is a multiple of this figure and Board fees should be considered in the light of the large scale Cavo Sidero Project and, historically a large and compl
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