VIRGIN AGM

[1a sound asleep]

I just got my voting forms for the AGM. Apart from voting for name change I see votes for JB to get 5 million share options as a bonus.

I would like to know What is the performance bonus based on? The reason I ask is I am suspicious that AJ's huge bonus was based on some very bad criteria. All for JB BUT I want to know what it is he has to achieve.

Lastly I see there is a vote to increase non-executive directors fees by 20% to $1.2 million. All this for a comoany losing money? WTF

Beginning to think Virgin is heading down the same road as Qantas.

[ampclamp]

I make no connection with the airline stocks but there have been known to be cases where share prices are left to wilt under a new CEO who is then set very low hurdles to jump for a very tidy package of options with exercise prices set quite low . Kaching!!

Many take credit in a rising market (bonus please) and blame poor conditions, adverse trading etc when things go badly and often recognised for a job well done in tough circumstances. Bonuses all round. Mate, you just cannot lose.

I do think incentives are good if set at the right prices and it is a long term price not just a slash and burn root the company for a short term turnaround.

[greenslopes]

Proof of the pudding........

JB's plan is taking a while to change the direction of V Au.

To all the naysayers, you are quite correct in pointing out lots of expenses and no profit.

Thankfully the V Au board under direction of JB appreciate the benefit of spending to generate value rather than Godfrey who was all about cost cutting,cost cutting and more cost cutting.

I may be proven wrong but many indicators show strong growth and a good stock worthy of consideration(as far as airline stocks go!).

[inandout]

look at page 50-53 and 117 of the AR, has it all.
Some are very well remunerated in a year of LOSS. If the share price goes up and the company makes a profit these people will make mega $.

[tail wheel]

If one were adicted to gambling on airline stocks, surely an astute investor may sell the former and buy the latter?



Perhaps the VBA CEO has earned genuine value for the company Members and deserves productivity based financial recognition? There is nothing shabby about a 50% gain in share price!

[1a sound asleep]

tail wheel this is great for perhaps the short term day trader, even though the company still has not reported a profit in this period. The success of a company surely has to be long term profitability.

[inandout]

Both wrong, what it needs is some one like Et**ad to buy in.

[tail wheel]

1A. A 50% short term capital gain would have been great for my Super - had the Super Fund invested in Virgin, rather than Qantas!

My Super fund balance looks like that Qantas share price graph; despite contributing the maximum permitted by law, it is going backwards faster than I can fill the tank! One also wonders at the morals of a 15% input tax whilst experiencing capital losses!

I agree, morally executive management bonus incentives should be solely conditional upon the company's audited profitability, not inventive accounting around disposal of a company's essential operating assets.

[piston broke again]

Virgin AGM starts today at 11.00am in Brisbane. There is access to the podcast on Annual General Meeting (AGM) and Online Stock Investment News for Australian (ASX) Listed Companies - Boardroom Radio. Not sure if the footage is being streamed live on the net. Anyone have any further details?