RE: still relevant... in my brief read of the AGM brochure, I did notice one lone optimistic looking line under "Objectives" in "Components of Compensation" that said the "
Long-term incentive opportunity" is to "
Motivate to increase the share price"
However, under the
LONG TERM INCENTIVE PROGRAM the goal of which is to create incentive for directors and employees to increase share price, it is interesting to note that
the performance graph demonstrates a HUGE DECREASE in cumulative shareholder return from 2006 to 2010 relative to the TSX/S&P index!
The graph shows:
If you had invested $100 in the S&P index in Dec 31, 2006, it would be worth $104 today
If you had invested $100 in Medicago in Dec. 31, 2006 - it would be worth $61 today!
Granted, this has been a start-up company, and the hope retail investors still cling to, is that the best is yet to come, BUT, as Jentai mentioned, the large salaries and rewards in options received by management to date, means management prospered tremendously during this start-up period, while common buy and hold shareholders, lost on average 40% of their investment!
I always expect those in true leadership positions to share some of the pain with those whom they lead.
Jentai's claim of egregiously self-serving management rings very true here.
