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hi grubb,
My 2 cents worth:
- Might be more indicative to compare remuneration between either similar market cap or similar sector for a better comparison.
- Generally, it is better to avoid small cap owners who decide to milk the golden goose, rather than allowing the goose to multiply. If the owner owns a large stake (let's say >30%), thereotically, any for-gone profits that feeds into the net profit are supposed to boast the net wealth of the owner (through increase in stock price) if Mr Market prices it into the P/E ratio. That is one of the safe guard that OPMI (outside passive minority investor) has while trying to 'swim with the sharks'.
- IMHO, i feel that remuneration quantum is just a symptom of the more important question of whether the OPMI's rights and interests, are respected and aligned to Management respectively. To conclude, we should also check for other symptoms - (1) dividend pay-out ratio, (2) Is Mgt rewarded with stock options or cash...how are the stock options priced? (3) Does the remuneration structure encourages behavior that rewards shareholders for the long term, or otherwise? (4) Is the remuneration structured fairly? ie. they fluctuate with company's performance.......<i hope u get the point>
My 2 cents worth:
- Might be more indicative to compare remuneration between either similar market cap or similar sector for a better comparison.
- Generally, it is better to avoid small cap owners who decide to milk the golden goose, rather than allowing the goose to multiply. If the owner owns a large stake (let's say >30%), thereotically, any for-gone profits that feeds into the net profit are supposed to boast the net wealth of the owner (through increase in stock price) if Mr Market prices it into the P/E ratio. That is one of the safe guard that OPMI (outside passive minority investor) has while trying to 'swim with the sharks'.
- IMHO, i feel that remuneration quantum is just a symptom of the more important question of whether the OPMI's rights and interests, are respected and aligned to Management respectively. To conclude, we should also check for other symptoms - (1) dividend pay-out ratio, (2) Is Mgt rewarded with stock options or cash...how are the stock options priced? (3) Does the remuneration structure encourages behavior that rewards shareholders for the long term, or otherwise? (4) Is the remuneration structured fairly? ie. they fluctuate with company's performance.......<i hope u get the point>