Diversified Royalty Corp T.DIV

CEO compensation

[ndiamond]

Can someone please elaborate on this :


Sean doesn't get paid much unless he's making deals. He gets paid 3% of future royalties


WTF?    He gets a big salary, gets alot of RSUs (free stock), stock options.    Why the heck should he get paid a percentage of future royalties.    The royalties are for the shareholders...!

[Fannyman2883]

He's not paid much of a salary compared to some other CEOs out there. And the RSU's only really pay off it the stock increases dramatically, which is not super likely since not a growth stock.  He needs some incentive to come to work each day and bring in deals, since there's basically not a company without him. This report shows how Sean gets a portion of recurring revenue for

[Fannyman2883]

I have no issues with it. We need Sean to make deals to diversify the company, and it's not as if deals increase the share price. Also, any dividend increases from deals are nominal. So if I was Sean, I would want a reason to actually work hard to buy trademarks, which this accomplishes. Otherwise, he'll just phone it in and not actually do much. This way, incentives are aligned between

[ndiamond]

3% of royalties sounds too high for me. RSUs are free shares.    So each time he gets 100,000 RSUs - that's $280,000 free.       And sure it (share price) may not go up too quickly from there but he gets the dividend on all those RSUs.     That's alot of additional cash flow / compensation.

[Fannyman2883]

Sean calls the shots, since it's his company. I don't see a company existing without his connections and vision. Some Canadian CEOs make $10 million+ annually, so this compensation plan evens out that differential somewhat. It gives him an incentive to add royalty parnters. 

[ndiamond]

Yes - you are talking about salaries of CEOs of large cap (multi billion dollar comapnies).     That isn't what DIV is.     Many CEO's make $250,000 per year. Looking at the last AGM info circular - Sean was paid $1 million in cash and over  $750k in stock compensation.    For a total of over$1.75 million.     That is pretty heavy.  

[ndiamond]

And let's be clear - it isn't "his company".    It is the shareholders' company.

[Fannyman2883]

Investing in this company isn't for anyone, such as if you don't believe that Sean deserves his compensation package. The share price has always been, and always will be, in a core trading range between $2.80 and $3.20 for the most part. It was in 2017, and it probably will be in 2027. The good thing is, we'll probably be around $3.20 again before long. Buying and selling within this

[Fannyman2883]

And once we're well over $3 a share again, they'll be able to make another acquisition with new shares at $2.80 or so. 

[ndiamond]

Thanks for your comments - although I think you make a little less sense each time you post.   Sounds like you are a cheerleader.    Others may have different thoughts. I am a shareholder - but just going back to my original comments - don't think incentivizing by giving % of royalties on every new deal is the proper way to compensate.   And in absolute dollars $1.75

[Fannyman2883]

You're absolutely free to vote different board of director members next term...though they keep getting elected, so I suspect that most people don't see an issue with his compensation.  But yes, it would be better for shareholders if Sean accepted less...but I doubt that he would accept much less. The company was Sean's idea, and there really aren't many employees besides him

[babedinkleman]

This post has been removed in accordance with Community Policy

[babedinkleman]

This post has been removed in accordance with Community Policy

[flamingogold]

New board ID. You sound like Tommy.

[Tommy123]

This post has been removed in accordance with Community Policy

[nedstar71]

Is this what the kids refer to as an epic fail? Wow. Go away Tommy!

[ndiamond]

As you said nedstar71 -  epic fail by Tommy.    Lol.

[ndiamond]

Tommy -  your last post just gave away that you truly are Fannyman2883 (the lurker). You posted this comment under Tommy123  (when you meant to post it under Fannyman2883) : I can 100% assure you that I'm not 'Tommy'. I've never heard of him. I just normally lurk, but I recently found out how much potential DIV has, and wanted to share my brilliant insights on how

[babedinkleman]

This post has been removed in accordance with Community Policy

[ndiamond]

From reviewing his responses on this chat board - I get the sense that Tommy (and now Fannyman) is someone internal to DIV - perhaps Investor Relations for the company.    

[nedstar71]

No way. DIV is way above that. And if you look Tommy posts on many boards. Often trying to stir up discontent.

[ndiamond]

Weird.

[babedinkleman]

This post has been removed in accordance with Community Policy

[flamingogold]

BUSTED!!  Tommy-two faced.

[SlickRick40]

This Tommy quute is one of the best.     They assure you they are not Tommy, they have never heard of Tommy.    I ask how Transtommy123 has never heard of itself yet it is TransTommy itself posting the comments.     Let me guess Fannyman345 has hacked Tommy's account and continues to post false statements.       Santa says Tommy is