RE:Managment Pay Falls $517,879.00 in 9 months Ending Q3geezer21, thank you for confirming what I stated was correct, in spite of the BS you wrote "that
Management and Cons luting Fees for Prophecy Coal for the six months ending 30 September 2013 decreased $406,809.00 to $97,653.00". I stated that 1) A
ll Prophecy shareholders should ask why John was paid a $525,000 "severance" in November 2012 while continuing to do the exact same thing he was doing before AND still collecting the same pay ($35000 plus expenese) and bonuses as before. 2)
It has been 14 months now. When is Prophecy getting a new ceo? Where is the job posting? How many interviews have they done? Any executive search firm hired? Who is on Prophecy's CGCC? Same cronies who allowed John to walk away with $525,000? Thanks for pointing out that John's $35000 per month and likely other consultants fees are now simply capitalized
to the Ulaan Ovoo and Prophecy Power Generation projects. It is still money Prophecy has to pay. Do you think it really matters whether John's consulting fee is expensed or capitalized?
geezer21 wrote:
Prophecy Coal directors terminated an agreement with Mau Capital Management LLC (Mau) for John Lee's managment services on 6 November 2012 and paid out a termination payment of $525,000.00 and reduced Lee's compensation by $5,000.00 to $35,000.00 per month. Based on Lee's $40,000.00/month compensation the $525,000.00 is equivalent to about 13 months of severence that is consistent with severence packages and court awards.
The directors entered into a new agreement with Mau that either party could terminate on 90 days notice that means that Lee has been paid severence with a pending replacement to be found. In the interim a management fee has to be paid wether it is to Lee or a replacement. That is a wash more or less depending on compensation of a new incumbent.
The only real question here is when will this happen. See page 15 of last AGM Information Circular.
From MD&A, 30 September 2013, section 5, for nine months ending 30 September, page 20:
5. DISCUSSION OF OPERATIONS
2013 2012
Consulting and $ 97,653 $ 950,214 Consulting and management fees also include fees
management fees charged by officers of the Company management and its
subsidiaries. consulting and management fees. In the
nine months ending 30 September 2013 fees decreased
by $852,561, of which $445,752 were attributable to
Prophecy Platinum no longer being consolidated as at
November 30, 2012.
Backing out $445,752 attributable to Prophecy Platinum, Prophecy Coal fees decreased $406,805 in the nine months ending 30 September 2013 from same period in 2012.
From MD&A, 30 September 2013, Section 8, page 29:
8. RELATED PARTY DISCLOSURES
Key management personnel compensation
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, including directors of the Company.
Three months ended Nine months ended
September 30 September 30
Key Management Personnel 2013 2012 2013 2012
Salaries and short term benefits $141,972 $333,961 $ 464,986 $ 896,739
Share-based payments 34,091 198,358 238,498 324,624
$ 176,063 $ 532,319 $ 703,484 $1,221,363
Included in the key management personnel compensation are John Lee’s (Executive Chairman and interim CEO) compensation payments of $315,008, of which $283,500 was capitalized to the Ulaan Ovoo and Prophecy Power Generation projects for the period of January 1, 2013
John Lee's compensation 315,008/9 months = $35,000/month
Compensation decreased $517,879,00 for key managment personnel for the 9 months ending 30 September 2013 compared to the same period in 2012