ATM - A2 Milk Corporation Limited

[Beagle]

If the A2 Chief Marketing Officer goes that would be a huge loss. That Susan has been the driving force behind A2 the last few years

And nobody seems to have worried about her selling millions of dollars worth of shares lately.

Are incoming shareholders buying those shares effectively being "milked"

[see weed]

I am well and truly sick of the volatility minimoke...that's another reason to take a more circumspect approach as far as I am concerned.
I think Earl Gasparich is an excellent leader in a very similar vein as Simon Challis was at Ryman. I agree that the way a CEO relates too and motivates staff and senior management and leads them is of critical importance and think he's just the man for the job. As I said, I don't know these JetStar and Fonterror newcomers from Adam, maybe they're good and maybe they're hopeless. Got a spare coin I could flip

It's volatile because that's what the Aussi's do to get to eventually own 95% of the NZ company. They already have over 50% now haven't they? So you better buy back in tomorrow before the next uptrend. This could be the next coca cola.

[sb9]

Well hot off the press and also courtesy of one of HC member for posting details...

https://www.iod.org.nz/Branches-and-...ProductId/5752

Looks like David Hearn was in Auckland today for breakfast event as per above and one of the question has was asked by a reporter relating to recent news of CEO selling down shares...

And in words of HC member this is what he said as per below...

*****
"David Hearn (Chairman) gave a speech in Auckland this morning. During the Q&A session the issue of Jayne selling all her shares was the first question brought up in the audience. His answer was the shares Jayne sold was compensation for her existing scheme in she had in Qantas, A2M had to match it her old compensation scheme when she moved over. They just happen to vest the same time as her old JetStar/Qantas shares. The Australian rule is that tax becomes payable when the shares becomes exercisable, and not when they are exercised. She she was forced to sell 48% of her shares to fund her tax obligations. And the rest of it she sold was genuinely related to pre-employment commitment she made.

In hindsight David Hearn said they should've compensated her exisitng JetStar/Qantas shares in cash when she joined. But they can understand how it looks really bad right now.

Honestly, I really don't think there's anything sinister with Jayne's action and it rather was just poor timing (the fact that she also took two months off prior to starting at A2M further makes the optics look bad)."

****

I think its time to move on.....

Its probably bad move on BOD part re the way they compensated her rather than actions of CEO by the looks.

[longy]

It is probably a bad look too to offer her 4mil cash up front to get her over to A2. Shareholders probably won't be happy either. It is a case of poor judgement by the board I think.

[Ggcc]

It is probably a bad look too to offer her 4mil cash up front to get her over to A2. Shareholders probably won't be happy either. It is a case of poor judgement by the board I think.

Unfortunately finding people to run a big NZ company is huge and the pool of great CEOs is small. I think the money is ridiculous, but that is what CEOs get paid worldwide. We all need to compete to get the best CEOs with great financial packages (even though I think it is wrong, but whinging about it just makes me not a happy person).

[Raz]

Unfortunately finding people to run a big NZ company is huge and the pool of great CEOs is small. I think the money is ridiculous, but that is what CEOs get paid worldwide. We all need to compete to get the best CEOs with great financial packages (even though I think it is wrong, but whinging about it just makes me not a happy person).

half the value of a good CEO is the proven team of mid level executives that will follow them from the last gig..it’s the alignment and collective ability that really counts and that is why so many people try yet never make the first CEO appointment.

[Patient Panda]

Well hot off the press and also courtesy of one of HC member for posting details...

https://www.iod.org.nz/Branches-and-...ProductId/5752

Looks like David Hearn was in Auckland today for breakfast event as per above and one of the question has was asked by a reporter relating to recent news of CEO selling down shares...

And in words of HC member this is what he said as per below...

*****
"David Hearn (Chairman) gave a speech in Auckland this morning. During the Q&A session the issue of Jayne selling all her shares was the first question brought up in the audience. His answer was the shares Jayne sold was compensation for her existing scheme in she had in Qantas, A2M had to match it her old compensation scheme when she moved over. They just happen to vest the same time as her old JetStar/Qantas shares. The Australian rule is that tax becomes payable when the shares becomes exercisable, and not when they are exercised. She she was forced to sell 48% of her shares to fund her tax obligations. And the rest of it she sold was genuinely related to pre-employment commitment she made.

In hindsight David Hearn said they should've compensated her exisitng JetStar/Qantas shares in cash when she joined. But they can understand how it looks really bad right now.

Honestly, I really don't think there's anything sinister with Jayne's action and it rather was just poor timing (the fact that she also took two months off prior to starting at A2M further makes the optics look bad)."

****

I think its time to move on.....

Thanks very much for posting this SB9.

time for everyone to move on.

I will add for a few of you taking a bit more time off, away from share prices and the market might be a good idea. If you believe in the business share price volatility is not a good reason to divest shares or not purchase.

If management give you a rational, cogent reason for their action/s and theirs no obvious reason they are wrong or trying to decieve you it might be better to take their word at face value. You have trusted them up till now and with good reason they have produced amazing results.

[Ggcc]

half the value of a good CEO is the proven team of mid level executives that will follow them from the last gig..it’s the alignment and collective ability that really counts and that is why so many people try yet never make the first CEO appointment.

Yes I do agree and for all of them they usually try their hardest to do well for the company. I just struggle with their remuneration packages not only for this company, but loads of companies. As I said I disagree how much they get paid, but so is life and I just need to move along.

[couta1]

Yes I do agree and for all of them they usually try their hardest to do well for the company. I just struggle with their remuneration packages not only for this company, but loads of companies. As I said I disagree how much they get paid, but so is life and I just need to move along.

Or just stick to investing in companies where there are a lack of Troughers like the retirement sector or companies where the CEO has proven themselves over a long period before raiding the larder.

[longy]

Unfortunately finding people to run a big NZ company is huge and the pool of great CEOs is small. I think the money is ridiculous, but that is what CEOs get paid worldwide. We all need to compete to get the best CEOs with great financial packages (even though I think it is wrong, but whinging about it just makes me not a happy person).

Thanks Ggcc. I should rephrase. Re poor judgement of the BOD. They probably did not foresee that the shareholders/media reacted so strongly about it (how could they not, right?)

Personally I did not think 4mil plus was excessive to get a good CEO, given the money that this company is making. Time will tell if she is any good. I can't wait to the next round of announcement.