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| Nov 15th 2007, 12:39 Maelstrom Baphomet |
Finalized compensation/ownership plan. | |
| Based on the statements of shareholders on the compensation plan, here is what I've determined should be the most logical setup on the plan. 1. Ideal structure: 33% CEO, 33% Company, 33% General public 2. Salary: 1-2700K/month CEO discretion on amount received based on fund performance. 3. CEO stock options. CEO owns 13% currently Stock option plan would allow him to purchase shares at 1$/share, the ipo value and currently insured public shareholder value up to the 33% ownership goal so long as his holdings remain less than or equal to company ownership. This would have no negative impact on public share value or reserves per share valuations. 4. Company portion of Dividends would be used to buy shares from the public market of DGD to sustain its 33% ownership as the ceo escalates his ownership and to increase current capitol reserves until the point that all out-standing, non-company shares are backed by 1 linden. 5. Once ownership plan achieves goal, the ceo's salary may potentially be eliminated and salary come purely from dividend. This plan should result on shareholder value appreciation as capitol is reinvested in the company. It should result in CEO satisfaction as he will obtain more ownership over the partnership shared portfolio to a point that profits truly are shared equally between himself and public shareholders. It should result in value appreciation as the number of shares shrinks in availability so long as the attractiveness of the investment remains sustained relative to other alternatives. At the end of the plan, all company dividends would be reinvested to provide for growth. All ceo dividends would be done with as the CEO pleased. The Dividends would continue in line with profits and dividends could be 100% of profits as the ownership plan has growth planning already factored. |
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| Nov 15th 2007, 14:10 Kailen Juran |
Re: Finalized compensation/ownership plan. | |
| I presume that in point 2 that the upper value is not 2700K = 2,700,000 but rather 2700. :-) A clarification on the amount of stock options would be useful. Will it be limited by the CEO dividends, the CEO salary, the sum of the two, the company re-purchase, or something else entirely? However, regardless of that, I find the plan satisfactory. |
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| Nov 15th 2007, 22:11 Maelstrom Baphomet |
Re: Finalized compensation/ownership plan. | |
| Correct, it's 2700. Stock options are going to whatever is required to get ownership to exactly 33% of total funds, no more.. no less. Soon as that percentage of ownership is hit, no more options for the CEO. Also, I won't be selling any of my personal shares until that # is hit. The stock option purchases will be limited to CEO's personal funds from salaries and dividends. Buyback purchases will be limited to Company's dividend funds, but half the shares purchased back from the market may be utilized to fulfill the stock option plan until it's completed at the 33% ownership level for the ceo. |
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| Nov 16th 2007, 02:34 Kailen Juran |
Re: Finalized compensation/ownership plan. | |
| Thanks for the clarification. As the IPO was at L$1, this sounds completely fair, while investors can still expect capital gains in addition to dividends (at least to those selling). Also, as this is in-house so to speak, there's no impact on the public NAV. I have no problem with this. | ||
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