As I read it, the MD was issued shares back on 16.8.12 at 0.315 as part of his remuneration /incentive scheme, and was granted a loan of that value to cover the cost (see announcement 16.8.12), and had 5 years to repay the loan or forfeit the shares. see p26 of annual report.
The 5 years is up, the shareprice is lower, so he is better off to reverse the grant of 5 years prior. He received dividends for the temporary period he held them. At recent divvy rates, the value of divs would have been about 5 x1.2=6cps or 60k$. I cant figure out why the value for buying back is now shown at something like 27cps.
It does highlight how the company has not progressed over that time...the incentive would have been to repay the loan and keep the shares , with the shares hoped to be worth far more than he was granted them at.
If I have understood it correctly, it means the incentive scheme worked in that he was not rewarded with buying shares in 5 years time at cheaper than the then market price, because the price has fallen, but he had downside protection of $60k which is small but perverse.
LGD Price at posting:
23.5¢ Sentiment: Hold Disclosure: Held
