Tegel IPO

[hardt]

According to the Herald Phil Hand was in the top 10 paid CEOs with 3.6 million earnt in the last year. For a company that has underperformed and only made 34 million profit that is quite ridiculous

780k this year, so he knows what it's like to get a pay cut for underperfomance!

[janner]

780k this year, so he knows what it's like to get a pay cut for underperfomance!

$3000.00 a day to run a few chicken farms ???

Have to rephrase that.. Oversee the running of a few chicken farms..

[Beagle]

http://www.nzherald.co.nz/business/n...ectid=11898293

I am truly shocked by this. A relatively simple business to run and an extremely modest performer and only recently listed to boot. The mind absolutely boggles as to what other grotesquely outrageous salaries are paid in this company that's causing such systemic underperformance ? As long as the shareholders get a few old left over scarps of chicken food for dividends she'll be right ? Indicative of a major cultural problem of greed in this company ?
Disc: Don't own and very strongly inclined to never own after this completely outrageous revelation. Suspect the culture of this company is as rotten as a bad case of campylobacter.

Interesting contrast when you look at Julian Cook's salary at just one quarter of the above scandal...a company that makes far more money, has been growing earnings at ~ 50% per annum for years and operates in a complex development and healthcare needs business. I reckon he could legitimately put his hand up for a decent pay rise.
Disc Own Summerset.

[hardt]

http://www.nzherald.co.nz/business/n...ectid=11898293

I am truly shocked by this. A relatively simple business to run and an extremely modest performer and only recently listed to boot. The mind absolutely boggles as to what other grotesquely outrageous salaries are paid in this company that's causing such systemic underperformance ? As long as the shareholders get a few old left over scarps of chicken food for dividends she'll be right ? Indicative of a major cultural problem of greed in this company ?
Disc: Don't own and very strongly inclined to never own after this completely outrageous revelation. Suspect the culture of this company is as rotten as a bad case of campylobacter.

Interesting contrast when you look at Julian Cook's salary at just one quarter of the above scandal...a company that makes far more money, has been growing earnings at ~ 50% per annum for years and operates in a complex development and healthcare needs business. I reckon he could legitimately put his hand up for a decent pay rise.
Disc Own Summerset.

Performance bonuses were set forth by Affinity for Phil Hands appointment in Feb 2014... these were hit and therefore a bonus afforded - His salary is actually 780K.
Even with the bonus, he took home 0.05% of his firms revenue... not shocking, nor is it much of a scandal.

Do you honestly believe running Tegel is a simple task? - do you think turning Tegel around from where they were in 2014 to now was a simple task?
If these are simple tasks to you, why are you not running a publicly listed business yourself?...

2014 / 2017

TGH
REV: 517.2M / 613.9M
NPAT: -3.6M / 36.1M

SUM
REV: 78.8M / 175M*F
NPAT: 25M / 65M*F

As someone who has worked adjacent, spoken to and know closely those who worked fairly mid-upper management within Tegel - I have only heard Tegel houses a healthy environment, rewarding merit where it is due.

DISC: hold both TGH and SUM.

[Joshuatree]

Thankyou hardt. Looks like another case of wrong opinion seamlessly blended with fake news exposed.

And i can see TGH suddenly being "discovered " as the bargain buy and loved and cherished and its a do as i do and back up the truck time because I've got in low and want you to share and have have some of mine higher etc. Be careful out there. DYOR

[Beagle]

Performance bonuses were set forth by Affinity for Phil Hands appointment in Feb 2014... these were hit and therefore a bonus afforded - His salary is actually 780K.
Even with the bonus, he took home 0.05% of his firms revenue... not shocking, nor is it much of a scandal.

Do you honestly believe running Tegel is a simple task? - do you think turning Tegel around from where they were in 2014 to now was a simple task?
If these are simple tasks to you, why are you not running a publicly listed business yourself?...

2014 / 2017

TGH
REV: 517.2M / 613.9M
NPAT: -3.6M / 36.1M

SUM
REV: 78.8M / 175M*F
NPAT: 25M / 65M*F

As someone who has worked adjacent, spoken to and know closely those who worked fairly mid-upper management within Tegel - I have only heard Tegel houses a healthy environment, rewarding merit where it is due.

DISC: hold both TGH and SUM.

Regardless of how it was structured, base salary is almost irrelevant if they're going to pay a bonus like that for such mediocre performance his total package at $3.6m was more than 10% of the companies net profit after tax at $34m. Lets stick with the SUM comparison.
Julian Cooks salary at circa $800K is just a little over 1% of their projected underlying profit for FY 17 of $73.5m (mid point of forecast).

A good comparison for Mr Hand might be Chris Luxon's salary inclusive of bonus at circa $4m, (similar level). A company turning over in excess of $5billion eight times the turnover and producing approx. $400m after tax, (more than ten times the profitability based on average brokers forecast for FY17). Chris Luxon salary inclusive of bonus is just 1% of the company's annual profit after tax. On this basis Mr Hand would have received just $340K inclusive of bonus for the year, which frankly given the very poor performance post float is about all I think he really deserves.

"Rewarding merit where it is due" How so ? Did they beat the IPO forecast ?, No. Why was there a bonus at all for such mediocre performance ? By any comparative measure his salary is grotesque and vastly excessive based on very modest results achieved. What are KPI's upon which this bonus was paid ? Did he get a $2m bonus or thereabout just for being at the helm in its first year of listing, i.e. rewarded for nothing more than having to put up with public shareholders at an annual meeting ? I think this is yet another bit of anecdotal evidence supporting the view that one should be very cautious indeed with new IPO's until the truth in all its grittiness is fully revealed.

This is without doubt the most excessive case of naked executive greed I can ever recall in over 30 years of investing ! If that's indicative of how other executives are remunerated in the company then I truly appreciate your candor in revealing their culture based on your experience and my assessment is the structure of this company in terms of its remuneration policy is systemically flawed to the extent that its uninvest able. I will never be an investor when the company is really primarily run for the benefit of the executives and shareholders are a mere afterthought and inconvenience.
Disc Hold SUM and AIR.

[winner69]

TGH pretty pathetic diversity numbers

No female directors and 2 senior managers (prob one the usual HR person) out of 9

Who buys and cooks most of the chickens?

PS - 2 are the people person (seems to be predominately a female job) and the marketing manager (that's good)

[hardt]

Regardless of how it was structured, base salary is almost irrelevant if they're going to pay a bonus like that for such mediocre performance his total package at $3.6m was more than 10% of the companies net profit after tax at $34m. Lets stick with the SUM comparison.
Julian Cooks salary at circa $800K is just a little over 1% of their projected underlying profit for FY 17 of $73.5m (mid point of forecast).

A good comparison for Mr Hand might be Chris Luxon's salary inclusive of bonus at circa $4m, (similar level). A company turning over in excess of $5billion eight times the turnover and producing approx. $400m after tax, (more than ten times the profitability based on average brokers forecast for FY17). Chris Luxon salary inclusive of bonus is just 1% of the company's annual profit after tax. On this basis Mr Hand would have received just $340K inclusive of bonus for the year, which frankly given the very poor performance post float is about all I think he really deserves.

"Rewarding merit where it is due" How so ? Did they beat the IPO forecast ?, No. Why was there a bonus at all for such mediocre performance ? By any comparative measure his salary is grotesque and vastly excessive based on very modest results achieved. What are KPI's upon which this bonus was paid ? Did he get a $2m bonus or thereabout just for being at the helm in its first year of listing, i.e. rewarded for nothing more than having to put up with public shareholders at an annual meeting ? I think this is yet another bit of anecdotal evidence supporting the view that one should be very cautious indeed with new IPO's until the truth in all its grittiness is fully revealed.

This is without doubt the most excessive case of naked executive greed I can ever recall in over 30 years of investing ! If that's indicative of how other executives are remunerated in the company then I truly appreciate your candor in revealing their culture based on your experience and my assessment is the structure of this company in terms of its remuneration policy is systemically flawed to the extent that its uninvest able. I will never be an investor when the company is really primarily run for the benefit of the executives and shareholders are a mere afterthought and inconvenience.
Disc Hold SUM and AIR.

Delivered well over 200% CAGR earnings growth over his 3 years at the head.

For the tax year ending 2017 he received 625,000 shares from the IPO booked at a value of $1m, he has since purchased a few more on market - annual income is inclusive of this.

There are also LTI and STI options, not sure what these options would be valued at, I am sure they are plenty big.

They hit their forecasted volume, however margins contracted severely under huge poultry pricing pressure that arose months after the IPO and persisted long thereafter.

If margins remained as planned, at their volume in FY17, they would have hit IPO forecast... no crystal ball back then to warn anyone of what was to come.

Still boosted market share to 52% - Essentially, I am proud to have a 0.001% stake of New Zealands entire poultry market.



All in all, you must have forgot to read the bit about the past performance and focused solely on the stock price and missed forecasts.

[Snow Leopard]

...All in all, you must have forgot to read the bit about the past performance and focused solely on the stock price and missed forecasts.

With Roger the Beagle it is very much all about emotions first and if he can select a fact that supports that then all the better.

You nearly all work that way to some degree or other.

The TGH chart confirmed my prejudices about this IPO

Best Wishes
Paper Tiger

[Beagle]

That salary and bonus is normally associated with a company turning over several billion dollars and profits of several hundred million. I couldn't care less about past performance when the company wasn't listed, that's completely irrelevant to any comparison with other listed companies and corporate listed norms. The remuneration for current performance is grossly out of line with CEO's of companies of a similar size and level of profitability and is therefore grossly excessive. I believe poor beleaguered shareholders have every right to find this level of remuneration to be both morally bankrupt and grossly offensive. Further, this sort of remuneration for a company of this size is something that I believe is without precedent on the NZX and definitely not something that in any way whatsoever I would want to be associated with either as a shareholder or consultant or to be seen to condoning it in any other way.

We live in a strange world where once this sort of ugly corporate greed raises it feral head it has a nasty way of spreading as others somewhat engrossed in their own thinly disguised lust for money and power start to think they might be entitled to the same level of grandiose remuneration based on some misconstrued idea of relativity.
Without doubt the most vulgar remuneration I have ever seen for a company of this size and such incredibly modest profitability.
As I said right from the outset of this thread, this from a company that has a nasty habit of really leaning on their drivers, many of whom suffer such a degree of burnout they really struggle to have any sort of work life balance. I suppose this is one of the KPI's that generate such an outrageous bonus.
Anyway that's my 3 cents on the subject, if you want to be a shareholder and eat scraps left over from the corporate table of largesse, good luck to you after all what do I care, I am neither a shareholder nor do I intend to be one. Shareholders be warned. Its very hard to do well when you're up against rampant executive greed.