unfortunately if it got to two strike rule then we still would be stuff as nmdc could just vote to keep anyone (other than themselves in) .... i think - happy to be corrected.
below is a bit of the article in your post tony - how much is LCY doing of this. I wont comment and leave it up to peoples own ideas.
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So what should small cap companies be doing?
Understand and align with best practice: In the absence of seeking professional advice from a remuneration consultant, companies should take steps to understand what is considered best practice in their sector and how they rate against their peers. A review of annual reports should deliver a baseline analysis of what types of performance hurdles must be met to qualify for incentives, the management of options and strike rates, and a head-to-head comparison on Executive and Director fees.
Engage shareholders ahead of the AGM: According to a Goldman Sachs analysis published in November 2012, active engagement with shareholders has been key to avoiding a second strike. Even if you’re not in line for a first or second strike, it makes sense to build a conversation about your executive remuneration practice into your investor presentation, or include it in regular dialogue with shareholders. As the AGM approaches be sure to monitor the incoming votes or undertake an active campaign to understand voting intentions. This will give the Board adequate time to consider their response or even alter a resolution.
Use remuneration as a way to show your commitment to delivery of shareholder returns: Although remuneration is voted on at the AGM, many companies don’t take this opportunity to explain the rationale behind their executive remuneration structure. Use the AGM as an opportunity to demonstrate to shareholders how you are aligning salary and bonus structure with shareholder returns.
Listen and act upon your shareholder concerns: If the company receives a strike or a ‘near miss’ then this is a clear signal that shareholders have concerns.Don’t dismiss this. The points above become even more relevant if your company falls into this camp. Show shareholders that you are taking their concerns on board and engage with your investors and proxy advisors directly to understand the exact nature of their objection; and then formulate a response with this feedback in mind.
- See more at: http://buchanwe.com.au/two-strikes-rule-time-for-small-caps-to-start-talking/#sthash.CMjkhZBH.dpuf
HAW Price at posting:
2.2¢ Sentiment: Hold Disclosure: Not Held
LCY Price at posting:
2.1¢ Sentiment: Hold Disclosure: Held
(20min delay)
