Impression so far of Rory CEO and his Resolutions
Feb 27, 2014 12:23:56 GMT
kjk, bongobill, and 3 more like this
Post by redrook on Feb 27, 2014 12:23:56 GMT
Today I voted NO to all six resolutions in the 14th March GM. If you are voting, and I hope all members vote, don't leave it to the last few days before the GM in case your vote is not processed in time. Further, as I have posted elsewhere, if you are with NatWest Brokers - which use the TD Waterhouse trading platform - their subscribed Voting & Information Mailbox will only work for UK based companies, not RLL. They suggested that you phone their customer services and cast your vote. It is easy and takes a few minutes. Ask them for an e-mail to confirm that your vote has been recorded.
Many shareholders have commented that AIM is a cesspit and not a fit place for making investments. In part this is due to the lax regulatory oversight, but ultimately this situation has arisen due to the apathy shown by investors themselves by not organizing, not voting down BOD excesses and mismanagement, and not holding them to account. The ultimate responsibility for company oversight is the shareholders themselves. IMO the best way to focus the BODs attention in delivering 'shareholder value' is to send a clear message that the past excesses and mismanagement will no longer be accepted.
So far I have not been impressed by the new CEO Rory. IMO the new CEO is just continuing where the last one left off. Lets assess his short tenure in the post and his ability to lead by example, which has resulted in a continued slide in the share price. Around 25% down since Rory took over:
1) An abysmal scripted conference call: Poor presentation, and more importantly, poor answers to what were pretty mild questions.
2) The appointment of Buchanan: How much is their service costing RRL? The primary role of Buchanan is to act as a fire-wall between shareholders and the BOD. Effectively, to keep shareholders from bothering the BOD. OK, if this was their intention why not have a standard automated e-mail and voice-mail response to any queries, which is effectively what Buchanan do. It would also save a lot of money.
3) Rory's First RNA : This was clearly not leading from the front. A desire for more dilution with cheap shares going to their 'selected' and 'sophisticated' investors. Also, with his assured fat salary (which has not yet been disclosed), and with the share price diving below 1 pence, Rory's first concern appears to be sorting out his option package.
4) Scrapping RIG's previously agreed proposals: I thought that RIG were told by Landau/ Eva that these had been agreed by the incoming CEO.
Some additional points for concern:
1) Staffing Levels:
It can't have escaped shareholders attention that no one ever seems to resign or get sacked from RRL. People keep getting on-board but nobody seems to be getting off the good ship RRL. Contrary to what some shareholders believe Landau has not left. We are still carrying the previous baggage. Rory has also stated that we will be getting a COO, and has also alluded to the fact that a number of other executives will be coming on-board. Also, that he wants an in-house technical team.
My question is how is the salary of so many executives, managers and technical staff to be paid for. Also, taking their cue form Rory CEO, each of the new staff will want their own options packages and bonuses to incentivize them. IMO, Rory still believes he is working in Shell PLC with all their unlimited resources at his disposal. I do want new blood coming into RRL, but I want to see the previous baggage moved out to make room.
2) Further Dilution:
IMO if resolution 3 is voted in, it will be implemented and at around the current 1p price, to allow their 'select' and 'sophisticated' investor mates in. They will effectively have a stranglehold that they, and the BOD, will be able to get any resolution through irrespective of current shareholders' wishes.
IMO, the first task that Rory (a trained accountant) should have focused on, from day one, was to carry out a rigorous 'root and branch' cost saving exercise. I have seen many BODs in the past, when forced by dire circumstances, suddenly liberate millions from expenses and other miscellaneous expenditures. IMO such a cost saving exercise has never been performed at RRL since the ever 'wasteful' Landau was able to run directly to his drug of choice, further dilution. I cannot believe that significant cost savings could not be made.
3) Rory's Options Target:
These are just not ambitious enough. Some have commented that the option targets will provide a spur to incentivize the BOD to achieve these targets. However, this is not necessarily the case. Even if they fail to achieve these modest targets, they will just issue another resolution further down the line watering down these initial option targets, as other companies have done.
IMO he should first focus on turning the company around, and then later in the year, if/when he has demonstrated some tangible results, put forward his option scheme to shareholders at the AGM.
Many shareholders have commented that AIM is a cesspit and not a fit place for making investments. In part this is due to the lax regulatory oversight, but ultimately this situation has arisen due to the apathy shown by investors themselves by not organizing, not voting down BOD excesses and mismanagement, and not holding them to account. The ultimate responsibility for company oversight is the shareholders themselves. IMO the best way to focus the BODs attention in delivering 'shareholder value' is to send a clear message that the past excesses and mismanagement will no longer be accepted.
So far I have not been impressed by the new CEO Rory. IMO the new CEO is just continuing where the last one left off. Lets assess his short tenure in the post and his ability to lead by example, which has resulted in a continued slide in the share price. Around 25% down since Rory took over:
1) An abysmal scripted conference call: Poor presentation, and more importantly, poor answers to what were pretty mild questions.
2) The appointment of Buchanan: How much is their service costing RRL? The primary role of Buchanan is to act as a fire-wall between shareholders and the BOD. Effectively, to keep shareholders from bothering the BOD. OK, if this was their intention why not have a standard automated e-mail and voice-mail response to any queries, which is effectively what Buchanan do. It would also save a lot of money.
3) Rory's First RNA : This was clearly not leading from the front. A desire for more dilution with cheap shares going to their 'selected' and 'sophisticated' investors. Also, with his assured fat salary (which has not yet been disclosed), and with the share price diving below 1 pence, Rory's first concern appears to be sorting out his option package.
4) Scrapping RIG's previously agreed proposals: I thought that RIG were told by Landau/ Eva that these had been agreed by the incoming CEO.
Some additional points for concern:
1) Staffing Levels:
It can't have escaped shareholders attention that no one ever seems to resign or get sacked from RRL. People keep getting on-board but nobody seems to be getting off the good ship RRL. Contrary to what some shareholders believe Landau has not left. We are still carrying the previous baggage. Rory has also stated that we will be getting a COO, and has also alluded to the fact that a number of other executives will be coming on-board. Also, that he wants an in-house technical team.
My question is how is the salary of so many executives, managers and technical staff to be paid for. Also, taking their cue form Rory CEO, each of the new staff will want their own options packages and bonuses to incentivize them. IMO, Rory still believes he is working in Shell PLC with all their unlimited resources at his disposal. I do want new blood coming into RRL, but I want to see the previous baggage moved out to make room.
2) Further Dilution:
IMO if resolution 3 is voted in, it will be implemented and at around the current 1p price, to allow their 'select' and 'sophisticated' investor mates in. They will effectively have a stranglehold that they, and the BOD, will be able to get any resolution through irrespective of current shareholders' wishes.
IMO, the first task that Rory (a trained accountant) should have focused on, from day one, was to carry out a rigorous 'root and branch' cost saving exercise. I have seen many BODs in the past, when forced by dire circumstances, suddenly liberate millions from expenses and other miscellaneous expenditures. IMO such a cost saving exercise has never been performed at RRL since the ever 'wasteful' Landau was able to run directly to his drug of choice, further dilution. I cannot believe that significant cost savings could not be made.
3) Rory's Options Target:
These are just not ambitious enough. Some have commented that the option targets will provide a spur to incentivize the BOD to achieve these targets. However, this is not necessarily the case. Even if they fail to achieve these modest targets, they will just issue another resolution further down the line watering down these initial option targets, as other companies have done.
IMO he should first focus on turning the company around, and then later in the year, if/when he has demonstrated some tangible results, put forward his option scheme to shareholders at the AGM.
