An ASX announcement from RHG yesterday indicated CEO Glenn Goddard has converted the vested portion of his company issued options into ordinary shares. Goddard was issued 10 million options in July 2008, with a strike price of 10 cents each. So far, 6 million are able to be exercised and that’s exactly what he’s done, forking out $600,000 for a parcel of shares with a current market value of $3.8m (there are now 329m shares on issue, so Goddard owns 1.8% of the outstanding shares). Who knows, perhaps he’s planning on voting for Greg and myself at the upcomimg AGM?
The good news is that shareholders are a lot more likely to receive a dividend now that the CEO owns shares instead of options. Unfortunately, there are still 4 million options outstanding. If I were Glenn, I’d be encouraging the board to wait a couple of years.
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{ 7 comments… read them below or add one }
“Who knows, perhaps he’s planning on voting for Greg and myself at the upcomimg AGM?” hahahah. I like your optimism. One can only hope!
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Certainly I think that if you guys get voted on (as I really hope) than I think the first few meetings are going to be fun. How do you as CEO appear impartial after spending 600K just to vote 6 million shares and I assume they are no to you guys.
Hopefully the shareholders realize that its important to have some really independent parties at the table.
Seeing as management have said that dividends are a way off (For that I personally read never) spending 600K must have some real meaning if its to pay your money when you didn’t need to.
This must be a very neat club to belong to almost like the three musketeers or sorry four musketeers. No wonder you don’t all have to attend board meetings and you only need 4 of them a year.
Imagine having bought into this in the prospectus. Even aside from the GFC the treatment seems really that the directors are only in it for their objectives. However we get the leadership we deserve if we don’t put a stop to this.
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John Reply:
September 29th, 2009 at 10:36 pm
There is the possibility that the $600k was given to him by the board expressly for this purpose.
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i agree they are only in it for themselves and i will hang in there irrespective of the price as there is a principle involved and i applaud what greg and steve are doing.
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I agree with Mitch although Principles and boards seem to be mutually exclusive!!!!
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There is clearly a lot at stake. But it also does represent confidence in the value of the investment, despite the dim picture painted at reporting time – and also speaks volumes about the need to preserve the current arrangement for the existing Board.
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Hi everyuone maybe Glenn Stoddard is loosing his nerve and realises change is coming. I thaink that directors who dont attend board meetings souldnt get paid. Porbably $10,ooo per meeting so that they would have to attend 10 meetings a yeat to get their lazy $100,00. I could do nothing for $100,00 whish is what the directors are doing.
cheers Kim
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So if they are worried enough to go out and acquire a cheap 1.8% of the outstanding capital then they clearly see the vote as closer than they would like already. The ultimate test is after the vote what Glen Goddard does. If there is no change to the board and he sells his shares within 12 months then you can bet there is no return to investors expected and he pockets a nice profit into the bargain. I have decided to start my own company as being a director sounds like a laugh, heck I can read the Corporations Act 2001 as well as anyone else.
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Warwick W Reply:
October 15th, 2009 at 9:30 pm
I think he would not sell for 12 months or he would be liable for capital gains tax on the lot (less 10c a share).
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