Verde Agritech Ltd T.NPK

CEO Compensation Recap

[15Stanmore]

Hello fellow Verde shareholders,

Following the November 5, 2021 release of amended Q1 and Q2 financial statements required to correct additional errors reported to the Company in August 2021, we now have an updated picture of the total "compensation" received by Mr. Veloso, the Company's lifetime CEO.

                     Base Salary         Annual Bonus     Total Annual       Stock Options Granted

2012               382,000                   320,000            702,000                      500,000
2013               418,000                   158,000            576,000                      250,000
2014               420,000                   158,000            578,000                   1,500,000
2015               420,000                        nil                420,000                         nil
2016               420,000                        nil                420,000                         nil
2017               420,000                        nil                420,000                      492,308
2018               420,000                        nil                420,000                   1,092,308
2019               420,000                        nil                420,000                      150,000
2020               420,000                   550,900            970,900                      150,000
2021               420,000                   486,780            906,780                      750,000

Mr. Veloso has also been granted (as dsclosed in March 2021) the potential to earn an additional $210,000 to $420,000 annual bonus in 2021 based on a sliding scale related to specified EBITDA and non cash expenses targets. Given the anticipated Q3 results are expected to meet and exceed these targets, Mr. Veloso would qualify for the maximum $420,000 bonus, bringing his 2021 bonus payments to 906,780 and his total annual compensation to $1,326,780.

Given the FMV assigned to the 750,000 10 year $1.22 stock options granted in March 2021 was approximately $865,000, Mr. Veloso's services as Verde's CEO in 2021 will likely have cost shareholders $2,191,780. That's a little over $8,400 per working day.

Cheers,

S.

[DiggeDiego]

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!

[15Stanmore]

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

[Dougisgood]

Wouldn't the full picture include how much debt paying staff over the course of Verde Agritechs history would have been accrued, interest on that debt, total potential costs/impacts of servicing that debt, etc?  Passport Potash was once a pretty active company, they paid their CEO a salary and I think they even changed the CEO a couple of times. I wasn't able to find them trading. I

[15Stanmore]

Hello Doug, Thanks for the posting. On your tax benefit point, we know that Verde has about $26 million in tax loss carry forward credits from the days when it burned through its original capital in its first itteration as a Brazil focused gold/diamond explorer. While these "Tax Assets" have real value when they are used to offset corporate taxes otherwise payable in a profitable year

[Dougisgood]

Thank you! That's good to read about the tax credits.  I'm was more inquiring as to the complete picture regarding salaries. Adding up the values I believe you indicated were pertinent as being paid in shares and not salary the value appears to be $3.32 million.  If the CEO wasn't paid in shares what would he have been paid in, cash presumably? Where would the cash have

[15Stanmore]

Hello Doug, Between 2102 and today Mr. Veloso acquired 6,665,178 shares at a value of $4,008,310, so about $0.60 per share. At Friday's closing value of $1.59, those shares are worth $10,597,633.. Had the Company had to borrow the funds to pay the CEOs salary, I am not sure they would have approved $420,000 per year nor the bonuses paid. If they had, they would have 6,665,178 treasury shares

[ICT1111]

I think it is also fair to say that if CV had received cash salary and chosen to buy 6m shares in the market since 2012 the demand would have forced the share price well above $2.....