AGM Materials and Info CircularSome new material has been released on Sedar.
A few things that really jump out at me:
- How poorly the share price has performed against the benchmarks over the past 5 years.
- How much money Management is getting paid in variable compensation relative to the underperformance of the share price. This includes both Naomi and Tim at $1.2 million+ of which a huge amount is variable.
- The lack of an Independent Director on the investment committee (maybe this isn't a big deal).
- The statement regarding Naomi will taking the reigns from Tim for succession planning purposes. I am paraphrasing but I don't think I'm too far off on this.
In every report the shareholders are given lip service to shareholder returns but Melcor needs to focus much more on rewarding shareholders in a way that manifests in share price appreciation. Book value is now above $40 and the shares are between $11 and $12.
If the Board really had the right independent directors there would be a much more serious conversation at the Investment committee level about capital allocation and rewarding shareholders. At this point they could very easily sell off some assets and buy out the public shareholders at a reasonable price ($24 to $32) and maybe we would all be better off for it.
LR