Member Info for Straycat

Cockeye,

Page 12 of the 8th December 2016 Presentation stipulates the Maximum Incentive Value available to VCP participants @ $42.1m.
By way of illustration the VCP goes on to demonstrate what this means.
The total value of the Incentive Pot is to be split as follows:
JF @ $18.9m or 45%;
SZ @ $14.7m or 35%;
'Other key drivers' @ $8.4m or 20%
on achievement of the five year market cap target of £686m.
Nil Cost Share Options will be vested on achievement of the annual market capitalization targets starting at the end of year three (end 2019) and using the average sp for the thirty consecutive days following the announcement of the results for each relevant year commencing end of plan year two (2018).
Hence the 15th May 2018 RNS.
I don't understand Bravedog's interpretation either.

Bravedog,

'Why can the board change the VCP at any time?'

I never posed that question. I merely noted that they could.

Mikey,

If they are both Paul that is a great pity because this BB has been a very useful and informative vehicle for a better understanding of GKP.

Hi Krok,

It would appear that I have offended your finer sensibilities, which is a shame because I was just about to complement your on your latest post and the apposite comparison made between Ophir and RPT.
This was borderline genius work well above my pay grade but seemed to suggest disastrous outcomes for RPT.
Not to worry eh.
In any case, I had something else on my mind to chat with you about.
For some time now I've been suffering from a lack of confidence in my share portfolio. I feel judgmentally impaired and it's reflected in my portfolio performance which is dreary and unresponsive in turn.
In short, I'm in need of guidance...and I know I shouldn't ask, but I feel that you might help me through this difficult period as my Mentor.
I regard you as being truly unbelievable and 'special'.
Please consider my request.

Bravedog,

My view is that the VCP was created as a set of golden handcuffs and the targets were so structured to ensure a payout for loyalty to the cause, not as real incentive to real growth in Shareholder value.
On the matter of the methodology for valuing the options as an average sp over the thirty days subsequent to AGM, I have no issues with that aspect of the deal at all.
This is because the sp is irrelevant to the triggering of the nil cost options which are clearly geared to preset market caps, year on year, with year 0 having a completely fictitious market cap fixed @ $300m
The actual market cap @ 31/12/2016 was £1.29 * 229.4m 1.233 (xr @31/12/2016) = $365m.
So right from the get go the Executive Board and 'other key drivers' were already onto a winner!
The minimum hurdle market caps @ 8% compound are; year 1 - $324m, year 2 - $350m, year 3 - $378m,year 4 - $408m, year 5 $ 441m.
Nice work if you can get it.
Better still they get the chance to rework it as circumstances change.
The VCP participants are already in 'the pound seats' for doing nothing but towing the Party line.
The real question has to be about what they've signed up to. What is the real plan?
I don't know, but I believe the VCP plays a key role.

Footnote : Lunchtime market cap is c.a. $750m....year 5 VCP target is $686m.

Jolly, absolutely...I was straight back in today and will continue to support this stock because, geopolitical tensions aside, this is a quality Company with a growing cash pile, no debt, and rock solid fundamentals.

Welcome change of pace and trajectory given what's been going on for the past few months.

Krok,

Terrific!
Congrats and well done, I'm very pleased for you.
If only we were all that knowledgeable and blessed.
Truly amazing.
Startling.
I'm genuinely stunned.
Stupefied in the face of such talent.

Please, oh please, tell me more. I can really learn from you.

We all can.....

Krok,
Your analysis is total BS, but I'm glad you're here because it lends further support to my view as to what's really happening.
Just for the record there will be no hostile bid, if there is any bid at all.....it would be doomed to failure.
Any bid would have to be agreed.
And what would he need Market money for afterwards?
He's buying a cash generating machine with a great future.

But that having been said, please post away. It brightens up my day and for that I thank you.

I'm in again tomorrow...it's obvious what's happening here and it's working.

We received advance briefing notes/conference calls before Analysts meetings at which we were advised of their personalities, sentiments, food preferences, marital status, the whole kit and caboodle.
At the same time we were advised as to the required direction of presentational dialogue...they got to know what we wanted them to know, and the House Broker will always have better information on which to work.
The rest will have retired from the field, unable to compete with the current incumbent, PH.

So Pinchuk takes his stake up to 28.65%, just below the Bid threshold, and shortly after the VAS licence is suspended crashing the share price.....Hmm.....

Only up to the market cap. five year target (end 2021) of £686m, which has already been achieved with two and three quarter years to go.
Unless they change the rules of the VCP;
'the Directors reserve the right, up to the time of the AGM, to make such amendments and additions to the rules of the VCP as they consider necessary or desirable, provided such amendments and additions do not conflict in any material way from the summary set out in Part 2.'
It's not clear from the text whether this refers to the AGM following the publishing of the VCP only, or whether it permits them to make changes at any point going forward.
I'm guessing the latter. If that's right, then they can announce changes at any point going forward, to suit changed circumstances, as long as they remain within the initial summary objectives of the original VCP.
Critically these relate to 'long term sustainable Company performance and creation of Shareholder value.'

Sorry, s/b 20% other Exec. Directors and key value drivers.
Nevertheless, still no need to buy in when VCP does it for you.

Thanks Truth.

The VCP is
'only available to Executive Directors and key value drivers.'
The only two Exec. Directors named are JF and SZ along with their nil-cost option Incentive Pot distributions @45% and 35% respectively. That leaves 35% for the other Exec. Directors and 'key value drivers'.
So no need to buy in when the VCP gets them all where they want without spending a penny!

Cockeye,
I don't know why they're not buying into their own dream, maybe they're all locked into the VCP?

Truth, point me to that reference please, but you make my point for me.
If they know they're under a duty to consider approaches and none appear despite the speculation, then they are equally under a duty to quash untrue rumour.
But they haven't.
In my view because they can't deny them without compromising themselves.

The Board of GKP have been appointed to manage the Company solely in the interests of the Shareholders.
This is a primary fiduciary duty crystallised in the 2006 Companies Act.
The speculation surrounding the sale or otherwise of GKP has been intense and unremitting.
It started soon after the restructure and has developed into a cacophony of noise, some informed, some not so much, but all loud and high viz.
It cannot have escaped the attention of the Board and their advisors.
They could have quashed such speculation at any time in the last twelve months with a one line note to the Shareholders via a RNS.
Arguably they would be under a Fiduciary duty so to do for the purposes of clarity.
But, to the best of my knowledge they haven't.
Difficult to argue anything other than they haven't because they can't....

Cheers Mikey, but I reckon you'd have to be a fool to sell now unless you had to...I've been at it, buying throughout the down turn, and not in an Opulentia way.
I don't think I'll ever truly understand why a popular share goes down in value even though you've covered it eloquently and simply on several occasions!!
Where I've got to is that the MMs are preying on the weak minded/financed to achieve their target buy prices.
Oh well, at least you tried.

BDT forecasting sp recovery...