03-23-2012, 02:02 AM
Gulf Keystone board strikes gold
Posted by Paul Murphy on Mar 22 08:04.
Funny company, GKP.
The latest executive remuneration scheme seems to have been fashioned so as to encourage takeover speculation amongst the hoards of retail investors who follow this Kurdistan oil play.
Exit Event Awards
The Remuneration Committee has recommended that the Company makes cash settled awards to certain Executive Directors and employees conditional on the occurrence of an Exit Event (as defined below) (“Exit Event Awards”), up to a maximum amount equivalent to the value of 10,000,000 common shares of USD0.01 each (“common shares”) at the time of an Exit Event, and that a trustee (the “Exit Event Trustee”) be appointed to hold and, subject to the occurrence of an Exit Event, to sell sufficient common shares to satisfy the Exit Event Awards.
The wheeze now involves creating an exit pot worth up to £25m (at today’s share price) in the event of a sale of the company or a majority of its assets. There’s a plan to appoint someone to keep an eye on this pot — an “Exit Event Trustee.”
This is on top of the regular executive bonus scheme, which pays out up to another £25m of stock (at today’s prices) to top executives, led by Todd Kozel, over the next three years.
These awards are treated as related party transactions under London’s AIM rules. For details on the conflicts here, see the full statement from GKP.
Related links:
Widows and orphans, meet GKP – FT Alphaville
Christmas cancelled for GKP investors – FT Alphaville
Posted by Paul Murphy on Mar 22 08:04.
Funny company, GKP.
The latest executive remuneration scheme seems to have been fashioned so as to encourage takeover speculation amongst the hoards of retail investors who follow this Kurdistan oil play.
Exit Event Awards
The Remuneration Committee has recommended that the Company makes cash settled awards to certain Executive Directors and employees conditional on the occurrence of an Exit Event (as defined below) (“Exit Event Awards”), up to a maximum amount equivalent to the value of 10,000,000 common shares of USD0.01 each (“common shares”) at the time of an Exit Event, and that a trustee (the “Exit Event Trustee”) be appointed to hold and, subject to the occurrence of an Exit Event, to sell sufficient common shares to satisfy the Exit Event Awards.
The wheeze now involves creating an exit pot worth up to £25m (at today’s share price) in the event of a sale of the company or a majority of its assets. There’s a plan to appoint someone to keep an eye on this pot — an “Exit Event Trustee.”
This is on top of the regular executive bonus scheme, which pays out up to another £25m of stock (at today’s prices) to top executives, led by Todd Kozel, over the next three years.
These awards are treated as related party transactions under London’s AIM rules. For details on the conflicts here, see the full statement from GKP.
Related links:
Widows and orphans, meet GKP – FT Alphaville
Christmas cancelled for GKP investors – FT Alphaville