agm and unreasonable directors wages

It really sucks:
Taken from http://www.smh.com.au/business/fireworks-on-cards-at-kagara-agm-20111019-1m7v9.html :

The new chief executive of the copper miner Kagara Ltd, Geoff Day, could expect a lukewarm reception from some shareholders today when he fronts the group's annual meeting in Perth.

Some shareholders might be a little miffed about the halving in Kagara's share price since the start of the year and its recent $32 million full-year loss.

Other shareholders might also be wondering why Day - without their approval - was awarded 500,000 shares and 9 million options when he joined the company in February.

Advertisement: Story continues below The option and share payments, which helped push Day's remuneration to $2.05 million in his first four and a bit months, could set a new precedent.

The ASX listing rule 10.11 states that the issue of new shares to directors must be approved by shareholders. But Kagara has argued the share and option issue to Day was in his capacity as related party of the company just before he became a director.

Day was technically a related party in the period between when he was named chief executive in late December and when he actually took up the role on February 23.

Kagara announced Day's option package in January, well before he started as a director.

But the options and shares were awarded in March after Day had been appointed.

STEADY FLOW

Kagara's non-executive chairman Kim Robinson could also expect some questions over the increase in his total fees from $715,000 to $1.65 million last financial year. There are not too many non-executive chairmen who can get paid around 10 per cent of a company's operating cash flows.

Robinson's package included a $700,000 termination payment when he went from being an executive chairman to non-executive chairman when Day took up the chief executive's role.

On top of his new non-executive chairman's role, Robinson still gets an extra $30,000 in corporate advisory fees each month.