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clock Created with Sketch. 27/10/17
23:24
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Originally posted by jace.h
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"Loss of key personnel... The Contango Group mitigates this risk by employing recruitment and retention programmes and aligning long-term service with medium to long-term remuneration structures." (Prospectus from in mid 2016)"Mr Boubouras, who previously worked at UBS' wealth management arm, told The Australian Financial Review that 12 out of 21 key staff are locked up between five and seven years and have forgone bonuses in favour of equity stakes in the new Contango business, which will relist later this year. The rationale is two-fold. One is that it will shift the focus of staff from the short-term to the medium- and longer-term. The other is that profits, which will be distributed to shareholders, will be significantly larger if the biggest expense of the operation – staff – is slashed. That means the multiple the market assigns to the business should be higher." (AFR article from mid 2016)"The Company will work over the coming months to complete its transition to Sydney with a view to ensuring an efficient operating platform that aligns with these growth plans." (Today's update)
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Not an “early surrender”, jace.h. More likely, the ones with most to lose in terms of dollars and reputation, your Switzers, NAOS, Rankin, TC deciding that BooBoo is a walking disaster and has to walk the plank. Salvage operation now in full swing. The majority of CGA staff will now be turfed out as part of the “vigorous cost review.
