RE: RE: RE: RE: RE: RE: RE: Elbow River Funds, Sev You are right. For Pace, the "Cash Payment with respect to Employment Agreements" totals 4.2m$ while the amount for the "in-the money" options totals 1.3m$. For Avenex, it's 2.4m$ for the agreements, and an undisclosed amount (my estimate 2.1m$) for the options. (For Charger, the amounts are negligible.) So that makes around 10m$ of the 25m$ for management compensation. That's a lot of money! The remaining 15m$ also appears unreasonable.
From the Calgary Herald:
"Buchanan said the criticisms are unfair, noting that Pace and AvenEx are making payments as required under their employment contracts to managers who will be losing their jobs."
That is true, but those managers were not forced out, but decided themselves to lose their jobs, probably because the compensation was so generous. There is definitely something unethical in that situation.
The main positive is that those managers will now be gone! I wonder what was their aggregate annual compensation. Probably the 10m$ would appear as a reasonable investment.