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12-10-2017, 06:33 PM
On the incentive alignment of Management & Parent Co with minority shareholders, FWIW:
Note: below not based on hard data but rather based on my years of observation of the co and of course my flaws in fully interpret the data.
1. Parent co in this case I refer to BBR Swiss, since at least, they bear the name and largest shareholder. Also they are proud of the technology advantage of BBR.
Their interest may not aligned with minority shareholders, which we can see from the lack of dividends (could be due to whatever circumstances).
2. Management in this case, of course is mainly CEO and also Chairman.
CEO stake is about 5% and looking at his pay, the dividend would not be substantial as compared to “Expand and Boast” the company projects (even with negative margin), which are added to his CV and thence his image?
From the structure, it seems to me that the interest is not aligned.
To change that, Controlling parties has to change.
Note: below not based on hard data but rather based on my years of observation of the co and of course my flaws in fully interpret the data.
1. Parent co in this case I refer to BBR Swiss, since at least, they bear the name and largest shareholder. Also they are proud of the technology advantage of BBR.
Their interest may not aligned with minority shareholders, which we can see from the lack of dividends (could be due to whatever circumstances).
2. Management in this case, of course is mainly CEO and also Chairman.
CEO stake is about 5% and looking at his pay, the dividend would not be substantial as compared to “Expand and Boast” the company projects (even with negative margin), which are added to his CV and thence his image?
From the structure, it seems to me that the interest is not aligned.
To change that, Controlling parties has to change.
My views are your Gilbert & Sullivan's:
"The flowers that bloom in the spring, have nothing to do with the case".
"The flowers that bloom in the spring, have nothing to do with the case".