A hidden problem with a company that has enjoyed explosive growth in its share price.
Its just good old fashioned management greed...problem is its getting entrenched in the system and attracting the right senior staff without it is getting harder.
Why would people paid $A1.5m need an incentive to perform anyway ? The fact they have short term incentives and long term incentives (LTI's) grinds my gears more than just a bit.
Putting some numbers around the cost of previous long term incentives issued by ATM, the problem is we have a > 20 bagger over the last few years so almost all of the 3.6% of shares to be issued is going to amount to a management incentive cost and recorded as an expense item in the year in which the LTI's vest as I read it. 3.6% of market cap is just on $300m. That's going on the expense ledger as management costs as and when these LTI's vest over the next few years and will make quite an impact...well that's my read of the situation anyway and one of the reasons I only have a moderate stake in this company. Anyone else think a $100m extra expense next year to meet previous LTI's will make a difference to FY19's profit result ?
Geoff has done a fine job and is going to retire an extremely wealthy man...just beware of where this is coming from...