The Pitfall - Re: Form 4s filed yesterday....
《There is an inherent incentive for companies to keep their share price low up until the share awards are finalized. For a given level of earned incentive, a lower stock price means more shares will be awarded. Now that the awards are finalized, that incentive reverses.》
Many people have been talking about the apparent motivation for the management to keep the stock price low, and setting up the poison pill, then extending for another three years so the company could not be bought out, and the executives could not be outsted for the extremely low share price.
We have been asking this question again and again, but no one seems to care.
Let vote to take off the poison pill and change the policy of LTI to award the executives with fixed number of stock shares. That way, the higher the stock price, the more the executives are awarded.
It's so easy to explain why the stock price has been purposely kept so low for so long, and it is so easy to be solved. The only question I cannot get an answer is why the large shareholders such as SEAM and Temasek haven't say anything about the pitfall set up by the executives.
Does anyone have an answer?