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Pastimes : Zenyatta Free Speech Board
ZEN 77.480.0%Nov 21 4:00 PM EST
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To: hoov who wrote (1187)6/19/2015 9:05:04 AM
From: Bills163 Recommendations

Recommended By
cbs12311
GordWilson
panamax

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Glad you went that way Hoov as I always look at whether compensation is a motivator for management to do little. Let’s look at this company:

For the last three years AE has received the same compensation of 225k. As of the last yearly fiancials he had a VP and a CFO. Total management fees including salaries, benefits etcetera totaled around 900k for the last yearly financial report. More people have been brought on board since then so that has obviously risen, but only because the job is becoming more detailed as it grows. If he had sold his 4.5 million shares for around $4 he would have received 18 million. Invested at 5% that equals 900k or 4 times his salary. His yearly interest income would have equaled the total costs of all management salaries and benefits for the last financial report- each year. Sorry, I don’t see the benefit of not selling here unless you thought you could get more than $4.

Perhaps I’m not being critical enough so let’s compare to another graphite junior- heck let’s choose the one you seem to like as comparison. There, going from the 3 month financials posted at the end of March and extrapolated for the year, the CEO earns over 247k. He’s also a CEO or Director of other companies. One seems to pay him 7500/month- perhaps this is no longer,but it still seems to exist so please correct if I'm in error. So for 350k ZEN gets a CEO and VP focused on the one stock while the other company gets a CEO involved in several plays. Add to that the costs of the CFO of each company where Tom Mustapic at ZEN gets a yearly income on 12k while the CFO of the other company seems to receive 120k- we’re getting a real bargain there as the ZEN CFO is 10 times less expensive.

I don’t see your argument as valid here Hoov as I don’t see receiving company compensation as a motivator for not selling. Heck, compared to another junior graphite explorer it seems we’re getting a bit of a bargain especially in the CFO area.
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