Sherritt International Corp T.S

Early settlement of RSU liability!

[Contrarian333]

I wonder if the Company could get those former executives who are entitled to the large RSU payments to settle early thus removing the risk to both sides of the transaction of price volatility and removing the overhang on the stock due to the uncertainty of the size of the liability?

[VerificateASAP]

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[VerificateASAP]

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[YourFriendo]

What are the dates used when calculating the share price for the RSU valuation?

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[rkhosla]

It would require some altruism on the part of the holders and definately a sweatener - like using $.60 SP in the calculations.  So if you believe past management does not want to bankrupt us then maybe there's a chance. If on the other hand you think they're in it for the mega payday, and the fact they granted themselves these ludicrous things in the first place provides evidence for

[NorthVan77]

Possibly,  it's a gratuitous compensation package though imho and I don't see it's benefit to SH vs. options.

[VerificateASAP]

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[Contrarian333]

NorthVan - RSU's in and of themselves are not problematic.  In fact, their advantage is that they are a one time call on cash rather than an in perpetuity call on a part of cash flow as an option grant would have been.  The issue here IMO is that at the time of this particular RSU grant, the share price was severely depressed given the uncertainty facing the Company wrt its

[YourFriendo]

RSU's are not a practical way of executive compensation for penny stock companies given the extrem volatility and limited ability of the company to absorb such a large cash liability.

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[NorthVan77]

What do you mean by an in perpetuity call on cash? Options have expiration dates.

[Contrarian333]

Options get exercised and added to the share count thereby causing cash flow per share to decline all else being equal.  

[VerificateASAP]

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