AGM voting on new compensation resolutionsThere are a couple of controversial items on the agenda for the Oct 27 AGM.
RESOLUTION 9: APPROVAL OF OMNIBUS INCENTIVE PLAN - this will allow for the issuance of 10 million BONUS SHARES.
RESOLUTION 12: POTENTIAL KEY EXECUTIVE TERMINATION BENEFITS - they are looking to remove the restrictions on how much they can compensate individuals who leave the company. And they are looking to lift this restriction for the next 3 years.
Shareholders need to ask themselves if management should have the ability to freely reward themselves when:
1- the share price is down 33% year-over-year.
2- the BFS has been perpetually delayed.
3- the opportunity to cash in on sky-high iron ore prices appears to have been missed despite the shovel-ready DSO hematite project.
I'm not in a rewarding mood myself.