I think you missed a key point with Beeks, their staff are not well paid relative to the market, their retention is secured by via share incentive, it’s across the board and not Director focused. It results in a highly motivated results driven team, important to understand this as many analysts miss this point and just assume it’s the usual greedy mgt team. Also worth pointing out the CEO is also modestly paid
There is definitely management alignment with equity investors, as they are getting loads of shares for compensation.
But if there are no distributable profits to investors, because all of it goes to pay management, will investors benefit in the end?
I admit I haven't dug into the details of the management share incentive plans and the rules, to forecast/work out how much will go to management at different profit levels. I'm not even sure these details are published? So how can one be sure that over the next few years, despite increasing "adjusted" profits, that there will actually be some left to distribute to shareholders?
I think you missed a key point with Beeks, their staff are not well paid relative to the market, their retention is secured by via share incentive, it’s across the board and not Director focused. It results in a highly motivated results driven team, important to understand this as many analysts miss this point and just assume it’s the usual greedy mgt team. Also worth pointing out the CEO is also modestly paid
There is definitely management alignment with equity investors, as they are getting loads of shares for compensation.
But if there are no distributable profits to investors, because all of it goes to pay management, will investors benefit in the end?
I admit I haven't dug into the details of the management share incentive plans and the rules, to forecast/work out how much will go to management at different profit levels. I'm not even sure these details are published? So how can one be sure that over the next few years, despite increasing "adjusted" profits, that there will actually be some left to distribute to shareholders?