Chemtrade Logistics Income 6 50 Convertible Unsecured Subordinated Debentures T.CHE.DB.E

RE:Generating Value for Unitholders (LOL...) p.39

[leo101]

Kherson wrote: Management Information Circular 
Total Return
From January 2016 to the end of December 2020 total unitholder return decreased by approximately 49% over the entire period. Total compensation (see table 18 for summary compensation details) for the named executives over the same five-year period increased by approximately 11%. The disconnect between the decrease in unitholder return and the modest increase in executive compensation can be explained by a number of factors:

Snapshot of 2020 executive pay
The board and committee assessed corporate performance and individual performance of the named executives against pre-determined objectives for 2020, and determined the awards for the year. Total direct compensation for 2020 was negatively affected by payouts from the incentive plans, reinforcing the strong link between pay and performance.
Salary
Base salaries can be seen at page 32.
Annual incentive
The financial performance factor ranged from 110.2% to 123% for the named executives (see page 33). Distributable cash, which accounts for most of the financial performance factor, was above target and received a 106.7% payout, and Business free cash overall was also above target. After factoring in strong individual performance in a particularly challenging year, awards ranged from 124.1% to 150% of target.
Long-term incentive
The 2020 long-term incentive award was granted at target, and allocated to restricted share units and the performance metrics plan (see page 35). The potential payout of the 2020 performance metrics plan has been revised since 2019.
Payout of 2018 long-term incentive awards
The 2018 long-term incentive award vested on December 31, 2020. Restricted share units paid out at $6.73 per unit, and executives realized 56% of the grant value (see page 37).
The executives did not receive any payout under the 2018 performance metrics plan. Each of the performance metrics, total unitholder return, relative total unitholder return, and EBITDA growth, had a zero payout.

the recent financing was a red flag.