FormerXBC Inc XEBEQ

legacy problem might be caused by management incentives

[mingzhu]

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.

[Ciao]

That's not part of their incentive bonus, you can read the information circular.

[Ciao]

Correction: should read that's just part of their invcentive bonus plan, 25% for rev, 25% for EBITDA, etc.

[Gann999]

As it should be and is with every other company incentives for sales retain talent and it's the companies job to ensure they are setting correct prices to be profitable.

[mingzhu]

Thank 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 "