Member Info for Straycat

Hey Cockeye,
Why would Trevanian's post have been deleted?
And where is ss?
In fact, how does this control mechanism work and when is it applied?

For someone with 'No Opinion' you really let your hair down on RPT!

Quite right too....

I love this share....

Got him confused with Catterall appt on 11/1/2017...apologies.

Obviously all IMO.

Cockeye,
I'm not sure how to answer your queries, but I'll try.
Knowing nothing about JF, I have asked myself how I would behave in his circumstances.
His nil cost options will be 'locked in for significant periods ( 3, 4 and 5 years ) providing a very effective focus on the long term sustainable value generation of the Company'.
'The ultimate value of any Common Shares earned during the VCP performance period will be based on the share price at relevant vesting dates (years 3, 4 and 5) which is the earliest point that participants will be able to crystalise any value'.
RNS 1520 dated 15/5/2018 grants JF and SZ each 1681839 share based 0n 2017 full year results and calculated at the average thirty day sp following the announcement of the 2017 results, or @ $2.346 / £1.693.
My understanding is that these nil option shares can be excercised by JF and SZ at the end of 2019.
If that is all correct, then what would I do?
I would definitely keep them and work the sp as hard as I could.
I'd be out and about selling the GKP story because it's an inspirational tale of performance against the most formidable obstacles, too many to list here. (Not a popular view I know but JF wasn't around at the restructure),
I'd open and office in the City and I'd bin Cellcourt for the waste of space that they are. I'd replace them with a much more aggressive outfit, a team of like minded disciples spreading the Gospel at every turn and to everyone who would listen. I would make sure that it was known that nothing was off the table when it came to my ambitions for GKP.
Every commercial decision would be fan faired in advance using every available media outlet available.
Capital events would no longer be annual oddities.
There is no better story to tell than that of exponential organic growth.
Prime Mover should be the share price based on constant Market interaction.
In that way JF and his Nil Cost Share Option buddies would be doing what's best for us all, sale or no sale. And make themselves a lot more money in the process.
Hope that helps, but not sure it will.
Think I'm in danger of ranting... I'm going to lie down for a bit .

Point1,
I've skimmed that MOL presentation, all 84 dreary pages of it, and as far as I can see it throws no more light on GKP than has already been uncovered/gleaned by the eagle eyed PIs here.
But you're right, it does support GKP's long term self funding ambitions.
What it does do is shine a light on MOL's real need for a strategic makeover.
And the share price agrees.

I wouldn't worry Swell, the Ferrier lncentive To Underperform Plan ( FITUP ) will lead us inexorably to the promised land by end 2021!!!!!!
Go FITUP......

Sorry, JF bonus s/b $18.9m. It's SZ @ $14.7m.

Any bid would have to reflect future values and that seems a difficult proposition in advance of auction outcomes....

So finally we see that the magic number for JF is $686m after the 5 year plan.
And surprise, surprise he's already there!
£ 2.26 * 230m * xr 1.3 = $676m and it's only two months into year 3 of the 5 year plan.
If he does nothing but stay in holding pattern he walks into $14.7m come VCP expire @ end 2021.
And some of it comes early!!
But if he wants to maximise his profit, he'll keep his nil cost options and work the sp as hard as he can, sale or no sale.
Let's hope so.

is interesting, what with the Gas Licence Auctions upcoming and all.....

Where's the November payment!

highlander1970, counter intuitively the share price has nothing to do with the market capitalisation targets which are integral to the VCP!
The sp is ignored, and instead specific market capitalisation figures are used to determine the entry point for nil option share activation.
I'm not sure I've explained that very well, so I'll put it another way. Even though we know how to calculate market cap, it's unnecessary/irrelevant when it comes to the VCP because they've already stipulated the actual target market cap for each of the five years that the Plan is in operation.
Why is this important?
Because the Remuneration Committee was able to set the start point market cap in year 0 @ $300m. Where this figure comes from, I have no idea, but it is notional and bears no resemblance to reality.
At 31/12/2016 GKP market cap was in fact £299m ( 230m * £1.29) or $374m (using 1.25 xr @ 30/12/16).
So right from the outset both the Remuneration Committee and the key executives knew that the year 1 target of $324m was already in the bag!!!
So year 1 (2017) was a poor year ending with market cap @ £246m (£1.07 * 230m) or $332m ( xr1.35). Hurdle = $324m
Year 2 end (2018) market cap @ £414m (230m * £1.80) or $530m ( xr 1.28). Hurdle = $350m
So at no point were the senior execs at any risk of not achieving their VCP targets, and even if they had been, the rollover provisions would have kicked in to save their positions.
It is inconceivable that the signatories did not know what they were signing up to given the sums involved.
In my opinion the whole VCP initiative was developed to secure JF and co in place.
It was never intended as a reward for performance.
And it's working.
The only questions are as to the motives of those concerned, because, on my analysis they become very wealthy for doing very little, even under the VCP terms.
Please DYOR....

If only Point1, if only.

On the other hand, I suppose the better the share price performance the more the nil cost options are worth. to JF et al.....let's hope they see it that way.

I've just read, then re-read that VCP info' Mikey provided and I'm appalled.
Who came up with 8% compound market capitalisation growth as the 'hurdle'/threshold/target?
It's a joke.
There's even a rollover clause to cover annual targets being missed!!!
When I was employable, if I had presented my CEO with that drivel he'd have fired me on the spot.
Targets while being achievable should provoke tension and anticipation in equal order.
This so called VCP is simply a sop to keep average managers in tow.
I didn't invest in GKP for single digit growth.
On my figures, at no point over the five year VCP does the share price have to breach $2.00 (c.a.£1.54) for the Board to be in the money.
Like I say, it's a joke.

Good effort Mikey, though I've just read the word 'holistic' in context of Director remuneration so I fear the worst!!!

So are you saying that the VCP targets had only to be reached at some point in any given year?

Wouldn't it be more likely that those targets were set to be hit by each financial year end?

JF and SZ were each awarded 1.7m option shares in GKP @ at strike rate of £1.69 under the 2016 VCP on 14/5/2018. 50% of the shares vest @ end of this year, another 25% @ end 2020 with the balance vesting end 2021.

'The Nil Cost Option is subject to the rules of the VCP and will normally vest depending on performance against Total Shareholder Returns Targets.'

Are those targets the VCP calculations specified in Mikey's screencast?

If so, do we have any more detailed information on that screencast?

If not, what are the 'Shareholder Returns Targets'?

Looks like the two main protagonists have every reason to cherish and nurture the market capitalisation....so why aren't they?

Difficult not to draw the conclusion that they believe the sp will take care of itself over time, and since they pick up c.a. 900k shares each at the end of the year....

In their place I would wish to accelerate that market cap as quickly as possible and certainly before the calendar year end!

All IMO.