Srt Marine Systems Share Discussion Threads

[hjb1] 08/8/2016 20:46

one of the big problems is they haven't delivered anything worthwhile other than the indo deal in 12 months, and even that comes with caveats.

[the prophet] 08/8/2016 20:23

not naive WCE, we're all entitled to take a view on it and I can understand your viewpoint.

My take is pretty similair to supernumerary's take in post 3175.

it is true that SRT has still to deliver on the potential, so the first award may seem slightly 'previous', but they are not a greedy bunch, they are very hard-working and I believe they will do well for shareholders.

[west country elvis] 08/8/2016 20:11

Thanks folks for making that clear. Does it not offend your sensibilities that the directors have just given themselves a large wodge of cash whether they do well or not? Perhaps I am naive in this aspect of investing.

To me the directors' salaries seem sensible for the size of company with decent bonuses paid on performance. As the company has yet to actually deliver on all its potential it seems premature to be given rewards of this size at this point. As someone else pointed out perhaps reward based on underlying company performance would have been a better approach. As I say, perhaps I'm just naïve.

[supernumerary] 08/8/2016 19:51

tp - snap!

[supernumerary] 08/8/2016 19:50

Elvis - your understanding is correct - they have shares exercisable at effectively nil cost, in tranches which vest depending on the share price In response to earlier comments, options are usually only exercised (assuming they've vested of course) when they're about to expire, or when the holder needs the money, or when it suits their tax position.

I'm usually dead against these sorts of awards, but in this case I think it's forgivable. They're not over-generously paid, their achievement to date is outstanding, and they'll do us all proud if they earn the rest of them.

[the prophet] 08/8/2016 19:50

WCE

You have understood it correctly.
Yes, they have been awarded shares at virtually no cost

YUMYUM, the 50p, 75p and 125p refer purely as to when the shares 'vest', and bears no relation to what the directors pay to obtain the 'vested' shares, which, as the RNS clearly states,is the nominal value of 0.1p per share.

[west country elvis] 08/8/2016 19:37

YUMYUM - is that what it means? I understand they only vest when the share price has reached a certain level for so long but there wasn't a reference to an exercise price. Is this implicit in how share options are administered? (You can probably tell I'm not an experienced investor despite how long I've held here.) So the statement "exercisable at the nominal value of 0.1" has no bearing on how much is to be paid to exercise the vested options?

Thanks for taking the time to explain to this novice.

[yumyum] 08/8/2016 19:09

WCE, They are options to buy shares at 50p....75p....125p

[west country elvis] 08/8/2016 18:15

Sorry if I've misunderstood, but doesn't that RNS mean the directors have just been awarded shares to the value of ~£250k (ST), ~£125k (NP) and ~£75k (RH) at today's sp, at virtually no cost? The other tranches I'm not so bothered by as further value needs to be added before any reward. It's the immediate nature of the vesting of the first tranche that causes me concern. It's not like the directors didn't get bonuses last financial year for the company's performance.

I have been a holder of SRT shares since 2008 and have been impressed at the way the directors have always seemed to truly have the company's best interest at heart. So this announcement seems particularly strange and self-serving. I do wonder if the rest of the staff at SRT are benefiting from a similarly generous award of share options. If not, staff turnover may well become a new problem (not great when you are trying to grow).

[the prophet] 08/8/2016 18:00

LOL,think we'd all be off doing something else, LaV, rather than posting on bb's!....

[lavalmy] 08/8/2016 17:58

Mind TP, over 1,000p and even that cranky sod Bakky would be happy.

[trident5] 08/8/2016 17:58

The market kicked the ball.

[the prophet] 08/8/2016 17:57

ah, good point Trident 5.
So effectively need the closing share price multiplied by 20 (no. of days) to be over 1,000p to qualify.

[lavalmy] 08/8/2016 17:53

Who kicked the ball?

[trident5] 08/8/2016 17:45

Re-reading the RNS - it's the "average closing share price" - so I retract that complaint.

Dont begrudge them being properly rewarded - but this looks like they've moved the goalposts to where the ball was kicked, and that worries me.

[the prophet] 08/8/2016 17:02

I do think trident5 has got a point re the above 50p for 20 consec business days.....I make it 14 including today

The shares closed at 50p on 19/07/16, thus bringing that run above 50p to an end
Since then we've had 14 days

Not that I'm really too bothered.....

[lavalmy] 08/8/2016 16:57

ftt, Trident

A month ago, 50p would have looked like an attainable challenge, much as 75p looks now. Scroll back six months and the directors would have looked seriously deranged at suggesting £1.25.

I see no incentive for them to exercise any options unless they need to sell some shares.

edit: seems a fair point about the 20 days, so still a target!

[trident5] 08/8/2016 16:55

Also, the share price has not closed above 50p for 20 consecutive business days either.

What the hell are they playing at?

[fft] 08/8/2016 16:54

If the share price now heads below 50p and stays there, this will not look good.

[yumyum] 08/8/2016 16:45

Agreed TP, LaVal...SRT management deserve good rewards for excellent performance. I am perfectly happy and feel all three are very deserving.

[trident5] 08/8/2016 16:44

...only if share price targets are met…

Well that's simply not the case is it. 75p and 125p are targets - 50p is not.

[the prophet] 08/8/2016 16:43

LaV

completely agree with your take on this.

[lavalmy] 08/8/2016 16:41

And Peniket, if not more so.

Ftt, you don't use options like you think. They were granted options previously and it is up to them whether to exercise them or not, as long as they have vested.

But the real stuff here is that these schemes are in effect salary, taxed efficiently, and only if share price targets are met. They don't get much basic salary, and Tucker and I laughed at the AGM about how his bonus had quadrupled and nobody had mentioned it. For reference, that was from £6k to £24k.

SRT are very parsimonious, including with director renumeration, precisely because the non-execs have such large personal stakes.