Quote:
Originally Posted by
Maverick
Hey Winner,
Would you mind sharing you opinion on todays announcement. ...
This notice relates to the grant of performance share rights (Share Rights)
which are convertible into fully paid ordinary shares in OCA should certain
vesting conditions and performance hurdles be met under OCA's Long Term
Incentive Scheme (Scheme).
Just twiddling my thumbs before Wednesday but from a corporate speak perspective;
Firstly , does this suggest these "performance hurdles being met " is a very positive statement or meaningless?
Secondly, surely stuff like this should come out after the HY report - not 2 days prior?
I haven't seen this early timing of these sort of announcements happen in past years.
BTW I've raised my upper band for HY underlying to now go between $31.5m - $33m after reworking with the ARV and RYM margins and resales stats.
I would love to see you get your $40m. They'll blow that out of the after next year when selling Helier and Windermere but cant see it this time mate.
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Hey Mav .... I wouldn't read anything into the timing of the announcement
Hurdles are interesting
The Share Rights in each grant are divided between two performance hurdles;
– Share Rights will qualify for vesting on a straight-line basis, from 0%, where the total shareholder return (TSR) from
the commencement date to the measurement date is equal to the 35th percentile of the NZX50 Group, to 100%
where the TSR is equal to or greater than the 75th percentile of the NZX50 Group; and
– For the second performance hurdle, Share Rights will qualify for vesting if the Group’s annual growth in underlying
earnings (before interest, tax, depreciation and amortisation) per share (UEPS) from the commencement date to the
measurement date is equal to or greater than the target for growth in UEPS for that period.
So the TSR bit is all about being average and if not really bad (like losing the race) will get something .... pretty cool eh. I have asked what this 'NZX50 Group' is (probably other sector stocks' but they wouldn't disclose what it is.
I also requested what the earnings per share targets were but were told they were 'market sensitive' ..... in other words secret. Shareholders could be paying out millions but don't know in advance how much profit they trying to achieve (cynically probably only 5% growth). The AR did say Mr Pattison got Incentive payments that included a 10% earnings growth target amongst other thngs.
The only winners in these sort os schemes are the execs .... but we get comfort that their interests and ours are aligned. What a joke as a TSR of the 35% decile is not my expectations .... nor is a low earnings growth
Never mind its only money eh
As with a lot of such schemes the only winners are the recipients .... like for the Mar2022 year Mr Pattison got $292k STI and $252k under this Long Term Plan bringing hsi total rem to $1.2m