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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Comment by Lumberfeverlongon Oct 19, 2016 11:31pm
77 Views
Post# 25364217

RE:Insider Information for Concordia as per SEDI

RE:Insider Information for Concordia as per SEDI The vesting of RSUs are tied to the company meeting performance metrics and if met the payout is tied to the value of the company stock. Given how poorly the company and SP have performed over the last few months, there is very little value there for insiders. Options should also be underwater for most if not all insiders. The upshot is that insiders are not aligned with shareholders at this point. This is why it is even more critical for them to go into the market and buy company stock. If I were the board, I would reset the RSUs and options, but make the granting subject to insiders immediately buying common shares for a market value at least equal to 25% of their annual salary or director's retainer and another 25% within one year's time. I would not permit the company to make any loans to insiders for such purchases, but make the RSU grants very generous in terms of number of RSU's, but make the vesting metrics very high over a three year period. For example, I would come up with three key metrics and attribute a certain weighting to each. Net debt to EBITDA would be one, a revenue target would be another and an operational metric would be the third.  I would place the largest weight on the net debt to EBITDA ratio. This kind of compensation review the board has to complete asap. 

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