You cannot accuse Rurelec or the directors of doing what 'most AIM companies do' and award themselves a stupid amount of options and better still have at least put their own 'skin in the game.'
The annoyance is where Directors (of other companies) seem to think they can award themselves 5% of the company. For those that do the odd company deal, you'll note this is a similar percentage to the MBO 'free carry Directors get in Management Buy Outs' (MBO's). So they award themselves 5% of the company without taking the risks? Get real or get a real job!
On this post, freely comment on companies that do this, perhaps then post them a link to the entire post, especially where the performance of the company has been dire and they "not only need their £200K a year salary but a significant amount of free stock to motivate them!" There is a clear cut equation for when directors 'value their awards more than the effort they put in' so be very risk averse if you see it. One reason I shorted Vialogy was because of the "options" without the performance...and look now!
So let me get this right, the 'other' companies pay themselves significantly more than MBO deal requirements and want more shareholder cash in the form of options etc...I can understand options whereby there is very good performance but not when their is the normal dilution and eternal poor performance.
So as a reminder from an earlier post, my best practice and gold standard is Iofina. Grant of Options to Directors anything whereby there is a significant benefit to the Directors without the risk is unjustifiable. Congratulations to Iofina, I'll send them a Christmas Card!
Atb Fraser.
Thanks Fraser- RUR looking close now and Peter Earl did say a few months ago that they will get 7 days notice of the arb award, which they will RNS, so things could be getting interesting during that 7 day period and then on the announcement.
ReplyDeleteJust out of interest, the Andalucía gov rep was at the Mines and Money in London this week and his interview with Proactive Investors is below. No direct promises re EMEDs Rio Tinto permit, but its very business friendly and mentions the mine in the last 30 secs and around the 5 minute mark.
http://www.proactiveinvestors.co.uk/companies/stocktube/2390/andalucia-government-fully-behind-mining-in-the-region-2390.html
Cheers. The Leggie
Hi Fraser
ReplyDeleteCame accross this via today's alphaville. I used to chat to you on lse and advfn (olivierpelier) a while back. Its good to see you still provide commentary/opinion publicly. I learnt a lot from you when i used to trade back then. Just reading through back posts and its a great blog. Hope your well
Oli
Oli, thanks for that and hope you are well! I think it was a cunning plan by Ian to get me blogging again, albeit I now have significant control over the input of others so don't get any issues. Have a good weekend! Atb Fraser
ReplyDeleteIm good thanks. Had a couple of years away from trading and started getting interested in it again after hearing colleagues talking about some shares. I avoided their 'SXX' tip at 9.5p. Been interesting reading the blog about RUR/CHL, i last owned CHL in the days of £1.20. Its been fascinating looking at how decimated some AIM prices are now from when i last observed them. Anyway, looking forward to following the blog as you update. Its good you have found a way of controlling the old LSE/ADVFN diatribe!
ReplyDeleteCheers
Oli