Interesting piece on stock option payments for management, by Kyle McLean of Exploration Insights: http://tommyhumphreys.com/blog/the-real-cost-of-incentive-options. The conflicting issues of dilution and alignment of interests, combined with a capital intensive situation (like mining exploration and new technology plays) mean that management mistakes are paid for by shareholders in businesses where very few of the companies could ever receive a cash payment on sale of their real estate or intellectual properties that exceeded their market cap. He argues for an incentive system based on and fostering accountability, a focus on capital gains, entrepreneurial spirit, and a caretaking mentality. Not sure how this would be be into practice, though.
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IRonsideIR Blog
Welcome to the IRonsideIR blog. Our goal here is to discuss the kinds of issues we deal with every day in investor relations, from financing to fiduciary responsibility. Well, actually, the range is more like A-Z, but I was liking the alliteration.
A good IR officer is really a gifted generalist with broad interests, ready (after the necessary research) to provide a considered opinion on anything that has the potential to affect a company's share price.
At IRonsideIR we are liberally equipped with opinions. Our goal, however, is to provide our clients with good IR, and to make our good advice even better through discussion of the issues. Hence this blog.
The IRonside IR practice focusses on small-to-mid-cap companies. They often bring us into debates on issues that have an impact on valuation, as their management is busy building the business. This is fun for us, as it means we get deeply involved in company strategy as well as communication. But it also means that we have a deeper responsibility for the IR program and how it is received by the Street.
A good IR officer is really a gifted generalist with broad interests, ready (after the necessary research) to provide a considered opinion on anything that has the potential to affect a company's share price.
At IRonsideIR we are liberally equipped with opinions. Our goal, however, is to provide our clients with good IR, and to make our good advice even better through discussion of the issues. Hence this blog.
The IRonside IR practice focusses on small-to-mid-cap companies. They often bring us into debates on issues that have an impact on valuation, as their management is busy building the business. This is fun for us, as it means we get deeply involved in company strategy as well as communication. But it also means that we have a deeper responsibility for the IR program and how it is received by the Street.
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