RE:RE:CEO Compensation RecapDiggeDiego wrote: Stanley,
One very important point you seem to have missed in your Compensation Recap; Those Salaries and bonuses have NEVER been paid in cash. Which is very rare for a CEO staying in the company for so long. Of cource it has affected the float in the company's shares but never risked the cash situation while growing the company from an exploration company to a producer!
Hello DiggeDiego,
Thank you for your comment which is accurate up to 2019. In 2020, as disclosed in the Management Information Circular, while $210,000 of Mr. Veloso's base salary was settled in shares, the other half ($210,000) was paid in cash. The Company announced at that time that there would be no need for further payments via shares-in-lieu of cash compensation, and Mr. Veloso has received all base salary and cash bonus as cash payments.
That being said, having received the cash from the Company, Mr Veloso has chosen to use the funds to acquire additional common shares of Verde by exercising 456,308 $1 warrants on March 12 , 2021. With approximately 2,000,000 vested stock options still in hand, it would not surprise me to see Mr. Veloso use the cash he is now receiving from the Company in salary and bonus to exercise these options (some at $0.61 per share) to continue to increase his personal holdings (9,451,457) which is 18.75% of the issued and outstanding shares (50,416,015).
Your comment also reminds shareholders that Mr. Veloso is the long time beneficiary of the Veloso Family Trust and so is independently wealthy. Unlike the majority of CEOs who must cover their day to day living expenses for themselves and their family from the salary they earn, Mr. Veloso does not have this burden. This has allowed him to convert a significant stream of salary and bonuses into common shares of the Company over his lifetime tenure as its CEO.
As at December 31, 2012 Mr. Veloso held 2,786,369 shares of the 37,532,430 issued and outstanding Verde share at that time - a 7.4% ownership interest. As noted above, Mr. Veloso has been able to add 6,665,088 shares (out of the 12,883,595 issued by the Company during this time) and increase his ownership interest to 18.75%. Please note that this means Mr. Veloso was able to "buy" over 51% of all shares issued during the last 10 years, funded entirely by his internal compensation for occupying the CEO's chair.
Always good to have the full picture.
Cheers,
S.