GREY:XEBEQ - Post by User
Comment by
mingzhuon May 13, 2022 3:30pm
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Post# 34682689
RE:RE:RE:legacy problem might be caused by management incentives
RE:RE:RE:legacy problem might be caused by management incentivesThank you for the info. That explains. Here is the reasoning. If you have lower bids for projects, it is more likely to get contracts even it is not profitable. At least they can get revenue bonus. If the revenue is big enough, they can make up the loss of 25% earning bonus. With higher bids, it is more likely not to get them. They lose both revenue and earning. Managment are very "smart" or selfish. sharegolders should demand change, say, 45% for earning and 5% for revenue.
Ciao wrote: Correction: should read that's just part of their invcentive bonus plan, 25% for rev, 25% for EBITDA, etc.
Ciao wrote: That's not part of their incentive bonus, you can read the information circular.
mingzhu wrote: management is rewarded by revenue they create rather than earnings. That is why they had lower bids to get contracts as many as they can no matte how matter cost thet were. Anybody has know such incentives. Thi is explain the large backlogs and falling SP.