NZ Oil & Gas (NZO)

[fabs]

ts part of the package for a CEO. alternative being pay a lot more in base salary.

the CEA has to perform [to a degree] to get sp higher, mind you I think $1.50 is very optimistic.

If sp rises then all shareholders gain.

GOT NO ARGUMENT WITH THAT


Well can you realy expect an unproven new-comer to be payed only $600000 pa. ????
He has to be given a bit of an incentive top get off his chair.
After all this is a good earning co. with a splendid record of applying its S/H resources and huge potential in 3 or 5 years.
At the moment they add ten new
shares to every one they buy back, that sort of slight of hand borders on genius, they do not come cheap.

[Mr Tommy]

Well can you realy expect an unproven new-comer to be payed only $600000 pa. ????

Hes actually been at nzog since January 2008.

I chucked my meeting notice straight in the rubbish, I guess most people will do the same. What a waste of money.

[Chris Roberts]

Hi Chris,


I would appreciate if you could answer a question for me please.

Today I got notice of the Special Meeting on the 20th of Feb (along with the quarterly activities report). It appears that the meeting is solely called for the issue of shares to the chief executive. Is this the case?

Thank you

SSB

Hi. The new CEO's remuneration package was announced to the market on 8 December. That package included the opportunity for him to purchase 3 million shares, by paying 1c per share now ($30,000) and a total price of $1 per share ($3 million), which is to be paid after 2 years and within 5 years. There is also a mechanism to determine the issue price at the 5 year Final Date.
The offer is made under the employee share scheme which most employees of NZOG participate in. However, as the CEO is also a director (Managing Director), the ASX rules require shareholder approval (The NZX does not). It's unfortunate that we have had to call a special meeting, but our advice was that for tax reasons the approval could not be left until the next AGM. We sent the Notice of Meeting out with the Quarterly Report to keep costs to a minimum.
I know a lot of contributers to this forum have never liked the employee share scheme, but the intention is to align employees interests with those of shareholders - we all benefit if the share price rises significantly.
Shareholders should take the opportunity to vote on the resolution.

[Silverlight]

Hi. The new CEO's remuneration package was announced to the market on 8 December. That package included the opportunity for him to purchase 3 million shares, by paying 1c per share now ($30,000) and a total price of $1 per share ($3 million), which is to be paid after 2 years and within 5 years. There is also a mechanism to determine the issue price at the 5 year Final Date.
The offer is made under the employee share scheme which most employees of NZOG participate in. However, as the CEO is also a director (Managing Director), the ASX rules require shareholder approval (The NZX does not). It's unfortunate that we have had to call a special meeting, but our advice was that for tax reasons the approval could not be left until the next AGM. We sent the Notice of Meeting out with the Quarterly Report to keep costs to a minimum.
I know a lot of contributers to this forum have never liked the employee share scheme, but the intention is to align employees interests with those of shareholders - we all benefit if the share price rises significantly.
Shareholders should take the opportunity to vote on the resolution.

Dear Chris,

How does the $1 issue price account for dividend payments ie. if NZOG pays a 5 cent dividend in the coming year, does the issue price fall to 95 cents?

regards

[brucey09]

quoted Snr. Robert
"we all benefit if the share price rises significantly.'
how many shares Snr. Roberts buy in market?

[Chris Roberts]

I have 10,000 fully paid NZO shares which cost me $1.23 per share.
Re the question on dividends - they do not change the issue price. Partly paid shares receive a proportional share of the dividends - so in the offer to the CEO, he would receive 1/100th of a dividend.

[Silverlight]

I have 10,000 fully paid NZO shares which cost me $1.23 per share.
Re the question on dividends - they do not change the issue price. Partly paid shares receive a proportional share of the dividends - so in the offer to the CEO, he would receive 1/100th of a dividend.

Dear Chris,

Thank you for your response, while you state "the intention is to align employees interests with those of shareholders", all shareholders are different, and while NZOG shares remain undervalued, and there is more than 30 cents per share in cash, an increased dividend would be welcomed, or even a special dividend, by shareholders.

However this is not in the interests of management or the employee share scheme, as in contrast the current share buyback may increase the EPS of remaining shareholders, it also enriches those with interests in the employee share scheme, at a leveraged rate, at the expense of other shareholders.

On this issue, it would be prudent for NZOG to hold a SGM on the current employee share scheme, as while I agree with incentivising Mr Andrew Knight as CEO, the current scheme is only mildly aligned with shareholders interests.

regards

[fabs]

Hes actually been at nzog since January 2008.



And what outstanding contributions has he or for that matter the management made, to justify such a promotion.
Surly sooner or later there has got to be a time frame within which some beneficial positive and progressive results can be expected to manifest.
They have had a lot of time, money and lots of so called---experienced---? personnel.
All we got at the moment and actually for quite a while, is potential for something in the next 3-5 years.

[Awamoa]

Hi. The new CEO's remuneration package was announced to the market on 8 December. That package included the opportunity for him to purchase 3 million shares, by paying 1c per share now ($30,000) and a total price of $1 per share ($3 million), which is to be paid after 2 years and within 5 years. There is also a mechanism to determine the issue price at the 5 year Final Date.
The offer is made under the employee share scheme which most employees of NZOG participate in. However, as the CEO is also a director (Managing Director), the ASX rules require shareholder approval (The NZX does not). It's unfortunate that we have had to call a special meeting, but our advice was that for tax reasons the approval could not be left until the next AGM. We sent the Notice of Meeting out with the Quarterly Report to keep costs to a minimum.
I know a lot of contributers to this forum have never liked the employee share scheme, but the intention is to align employees interests with those of shareholders - we all benefit if the share price rises significantly.
Shareholders should take the opportunity to vote on the resolution.

"We all benefit if the share price rises significantly"
I doubt whether too many disagree with this statement.
The major discrepancy is when the share price declines.
So far there has been no evidence of employees taking a proportional pay cut.
A lot of the shareholders wrote large cheques for $1.50 per share.

[arjay]

That's an interesting contrast Awamona, and quite true. The lower the SP, the longer the crawl back up for shareholders to recover their investment. However, for employees and management in the share scheme, when the SP goes lower they simply lower the strike rate for the new shares (currently $1). =Profits for some at a low threshold and accompanying diminished effort to work harder.

I would pefer to see a results-based reward system for staff. eg, 1 fully paid share for every xx barrels discovered.