Post by
15Stanmore on Jan 12, 2021 10:25am
TMAC CEO Bonus
Under the Change of Control provisions of his employment contract CEO Jason Neal will be paid $5.8 million as a result of the sale TMAC to Angico Eagle at $2.20 . He would have been paid the same if the the SD Gold deal had gone through at $1.75.
I am no expert in executive compensation arrangements but it does seem to me that getting paid the same to sell the Company at $1.75 versus at $2.20 would appear to offer no incentive for the CEO to strive for the best deal for shareholders. Why would he put out one ounce of extra effort for absolutely zero increase in personal reward. Surely it would be a better design to have part of his change of control compensation contingent of the value he generated for shareholders - a fixed component (ie $1 million) plus a variable component (ie 1% of the sale deal value)?
Just my long suffering shareholder opinion.
Comment by
Wisedreamer on Jan 13, 2021 2:36pm
You make a good point! Thank you. Hope boards take this into account!