RE:Any thoughts on Proxy Voting for Proposals 3 & 5aussyspitz wrote: If the share price was currently sitting above a $1 USD I probably wouldn't have an issue voting FOR all their propsals straight down. Unfortunately it is not above a $1 and as a result I'm finding myself very reluctant to vote for Proposal 3: Expanded RSU's and Proposal 5: Increased Stock Options. Anyone else having this same dilema and any thoughts/discussion on the matter?
Peculiar timing Aussy. I have just spent a couple of hours looking into this. 20% of the existing shares to be awarded under the incentive plan seems excessive, twice as much as the 10% normally provided by other companies, and also more than the Board would normally expect. From the information circular:
"the aggregate number of Shares reserved for issuance under RSUs to Insiders
(as a group), together with all other Security Based Compensation
Arrangements, at any point in time may not exceed 10% of the issued and
outstanding Shares, unless the Corporation has first obtained disinterested
shareholder approval of this Plan pursuant to the policies of the Exchange;"
However, upon scratching deeper, I see that the company has had a 20% policy for a considerable time, and the increase in RSUs reflects this past practice based on the new post-bought-deal share count. Also, there are only a couple of million shares remaining in the existing plan that have not yet been awarded. Perhaps, not as bad as it originally appeared.
I suspect that a stock award announcement will be made shortly after the AGM. Awards typically follow achievements, and the successful completion of Phase 2 certainly was a major event. Also, (my observation) options are normally granted near end FY and/or following a positive development. Also, the corporation has stated that it grants awards annually as a matter of policy, and it has yet not done so this year.
This occurence (if it happens) likely won't sit well with many shareholders.