QANTAS Directors Shares
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QANTAS Directors Shares
Opinion Piece
Did a few directors and the Chair of QANTAS really agree to forego fees or did they do a deal to be paid in shares and cash in on a post virus upswing? ASX announcements for 3/3/20 might suggest that to be the case.
https://www.asx.com.au/asxpdf/20200303/pdf/44fqjfs9d8108b.pdf
https://www.asx.com.au/asxpdf/202003...jhsq55mnw0.pdf
https://www.asx.com.au/asxpdf/202003...jkqmlygknh.pdf
https://www.asx.com.au/asxpdf/20200303/pdf/44fqjrswttxmt9.pdf
https://www.asx.com.au/asxpdf/202003...jmzfr485kz.pdf
Did a few directors and the Chair of QANTAS really agree to forego fees or did they do a deal to be paid in shares and cash in on a post virus upswing? ASX announcements for 3/3/20 might suggest that to be the case.
https://www.asx.com.au/asxpdf/20200303/pdf/44fqjfs9d8108b.pdf
https://www.asx.com.au/asxpdf/202003...jhsq55mnw0.pdf
https://www.asx.com.au/asxpdf/202003...jkqmlygknh.pdf
https://www.asx.com.au/asxpdf/20200303/pdf/44fqjrswttxmt9.pdf
https://www.asx.com.au/asxpdf/202003...jmzfr485kz.pdf
Last edited by What The; 20th Mar 2020 at 04:33.
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I think the issue is, did the millionaires on the board forgo being paid cash and instead receive shares for this tough period. That’s a big difference in the way their pay cut was portrayed in the media. I would be happy to receive shares myself while on unpaid leave, unfortunately this hasn’t been presented to the working class staff. It certainly has the potential to be a big payday for them in the long term.
This relates to 5 non executive directors. Strangely Joyce is the only executive director on the board. And there is only one other board member apart from him who has any airline experience. But Todd Sampson is on the board and he knows how to wear a black t shirt. So all is good.
anyway from what I can understand what has happened is these 5 directors have taken up rights that will or can convert to actual shares in about 6 months time.
these right have been purchased at a share price of around 5.96
From the announcement
Granting of Rights under the Qantas Non-Executive Director Fee Sacrifice Share Plan (NED Plan), whereby a Non-Executive Director sacrifices a percentage of their base or total fees to acquire Shares.
So presumably if the share price is still below the rights price of 5.96 they are effectively worthless as they could have taken the cash instead and purchased the shares on market themselves for less.
I am not sure about that last paragraph. I know how rights issues work from a shareholder perspective. I have a feeling as it appears they have already paid the full amount of the shares at the price of $5.96 that they may have to take the shares at that price. The alternative is they get a refund of the full amount. Which thinking about it I don’t think will happen . So the part about the rights being worthless is wrong as they have actually paid for the shares.
anyway from what I can understand what has happened is these 5 directors have taken up rights that will or can convert to actual shares in about 6 months time.
these right have been purchased at a share price of around 5.96
From the announcement
Granting of Rights under the Qantas Non-Executive Director Fee Sacrifice Share Plan (NED Plan), whereby a Non-Executive Director sacrifices a percentage of their base or total fees to acquire Shares.
So presumably if the share price is still below the rights price of 5.96 they are effectively worthless as they could have taken the cash instead and purchased the shares on market themselves for less.
I am not sure about that last paragraph. I know how rights issues work from a shareholder perspective. I have a feeling as it appears they have already paid the full amount of the shares at the price of $5.96 that they may have to take the shares at that price. The alternative is they get a refund of the full amount. Which thinking about it I don’t think will happen . So the part about the rights being worthless is wrong as they have actually paid for the shares.
Last edited by Foxxster; 20th Mar 2020 at 07:14.
$5.96 is how they calculated their share entitlement. They will get the calculated number of shares regardless of the price in July. If the share price is $12 by then they will have received 2x their salary. The reality is they don't have to sell them then anyway, they can just hang on and wait for a better price if it is still low by then.
$5.96 is how they calculated their share entitlement. They will get the calculated number of shares regardless of the price in July. If the share price is $12 by then they will have received 2x their salary. The reality is they don't have to sell them then anyway, they can just hang on and wait for a better price if it is still low by then.
yes they have put in a certain amount of money, from around $16k to $90k which when divided by 5.96 gives them the number of rights they have purchased which in 6 months will be converted to the same number of shares. Regardless of the price the shares are trading for at that time.
I think people are missing the main point here. 5 directors, people who are supposedly been chosen for these well paid jobs for their experience and business acumen have made a breathtakingly incomprehensible error.
these 5 , only a few weeks ago chose to spend their own money effectively buying shares for $5.96. The closing price on Friday was $2.36.
Did they make a sound decision.
it is obvious they have been completely blindsided by this virus and it’s impacts on Qantas. How could that possibly be. Given how much we knew then. We saw what was happening in China. There were already cases in many other countries including Australia.
do you think any of these five still deserve to be directors if they thought the share price of Qantas and therefore the business of Qantas would not be materially affected. Look at what has been announced regarding capacity cuts. And more is to come once lockdowns are put in place. The share price then will be $1.36 not $2.36.
they all need to resign or be removed at the next AGM . And should never be directors of any company ever again,
their names are;
James Todd Sampson. Who can wear a black t shirt well but that’s about it.
Paul Ashley Rayner
Belinda Jane Hutchinson
Jacqueline Cherie Hey
Richard James Barr Goyder
