ATM - A2 Milk Corporation Limited

[Beagle]

I could have this wrong so suggest people DYOR. Pages 86 and 87 of the 2017 annual report is where you will find the details. It has been kindly pointed out to me by PM that probably there is no issue with partly paid shares previously issued at 63 cents to Geoff, (although clearly he will exercise them and it will be somewhat dilutive to future EPS) but its the options and the performance share rights that appear to confer a future obligation in terms of expense upon the company. Its all about as clear as the mud at a Rotorua hot pool though. Costs recorded last year of previous LTI schemes was about $2.5m, just on $3m the year before that. I expect that annual cost to head north at a very rapid rate. That said as long as the company keeps growing strongly it probably doesn't matter and Geoff deserves a very comfortable retirement, I have no issue with that but party paid shares, share options and performance rights, (3 different classes of long term incentive) as well as the usual short term incentive (AKA annual salary bonus) on top of an already lucrative salary package does make this hound scratch his head a bit.

I guess at least its only as a total,3.6% of market cap and its the benefits vest over quite some years and Geoff has helped create an awful lot of value for shareholders...
Wonder if the new CEO will do as good ????

[Leftfield]

Got to love RYM that have none of these hugely lucrative long term incentive plans for their management...just saying.

I'm from the "pay peanuts - you get monkey's" school of thought and am not sure the RYM comparison is valid.

ATM's SP has grown approx 1700% more than RYM (excl dividends) over the last 5 yrs. Besides, AFR reports that Jane is actually being paid less at ATM than she was at Qantas.

"The former Bain consultant's fixed contract is for $1.5 million a year. Her short-term incentive package is worth the same (with another 20 per cent on top of that at the board's discretion for "Jayne's personal performance"). And her long-term incentives in her first year of employment are performance rights equivalent to 175 per cent of her base salary.

Add up every potential source of remuneration and if she hits all her targets, she could be making $6.7 million in her first year. Which is very nice, though doesn't quite match her $8.1 million package in FY17 at Qantas." (Source AFR)

For those wanting more info on Jane, there is a Ted Talk which features her and is well worth watching.

[dobby41]

I'm from the "pay peanuts - you get monkey's" school of thought and am not sure the RYM comparison is valid.

ATM's SP has grown approx 1700% more than RYM (excl dividends) over the last 5 yrs. Besides, AFR reports that Jane is actually being paid less at ATM than she was at Qantas.

I'm not sure any comparison between ATM and RYM is valid - they are in completely different markets.

[couta1]

I hate all excessive Troughing no matter which company.

[winner69]

I hate all excessive Troughing no matter which company.

Labour in Australia have a good idea ....companies that pay excessive senior management salaries should get lumbered with a higher company tax rate than more reasonable companies

I’ve suggested that to our man Grant

[couta1]

Labour in Australia have a good idea ....companies that pay excessive senior management salaries should get lumbered with a higher company tax rate than more reasonable companies

I’ve suggested that to our man Grant

We could always organise a March to Parliament mate, carrying placards printed "Say No to Troughers" with offending companies also mentioned. PS-I reckon Shane Jones would be all in on that one.

[Sideshow Bob]

We could always organise a March to Parliament mate, carrying placards printed "Say No to Troughers" with offending companies also mentioned. PS-I reckon Shane Jones would be all in on that one.

Especially if you said Air NZ or The Warehouse!

[winner69]

So CEO probably earning 170 times or more the lowest paid employee

[bull....]

alot of the rise in price lately was caused by some weak shorters covering , i see bal has crashed and goldmans say a2 is discounting product

[couta1]

alot of the rise in price lately was caused by some weak shorters covering , i see bal has crashed and goldmans say a2 is discounting product

I could never understand why BAL went to $23, that's ludicrous, haha re Goldman's, they must want to mop up some more cheap shares. PS-Shorts were 28% of total volume yesterday so building.