Following my last blog, institutional investors have fired a shot across the boughs of management by voting against the remuneration package of CEO Paul McGlone.
Approximately 31% of votes cast were against his ‘Termination Benefits’ package, which had rather soft targets. Still, if good news isn’t forthcoming in the very near future I think he may be glad to have got them in the bag.
In my experience if several IIs are prepared to publicly vote against such a package, many more would have been annoyed by the CEO getting a bonus before delivering the goods.
Speaking of deliveries, I firmly believe that fleet is fixed and upwards of 20,000 Guardian units have been installed worldwide. However, the company insists on not releasing this material information to all investors – though it was inadvertently leaked by a distributor in Chile.
Instead, like a tired politician, they are chanting the mantra of “Let’s get the interims done,” while bandying about a 16k figure that is 5 months old, as if it has any meaning.
Worse, the information on the distributor’s website has been doctored in a rather rough and ready way. It now reads (in translation): “Guardian saves lives in more than 24 countries in the world, monitoring more than 20,000 vehicles in mining and commercial fleet vehicles.”
So all of a sudden we’re supposed to believe no new Guardian units have been installed in 5 months? Also that fleet and CAT are no longer split? It’s the worse cover up since Boris Johnson insisted that the NHS is safe in his hands.
I appreciate management want to surprise investors with good news but if price sensitive it needs to come out in a timely manner. How about a pre-Xmas trading update? Consider it a stocking filler to your long-suffering investors – who’ve just awarded the CEO the biggest present of his life.
As an aside, it’s worth remembering that institutional investors, being a little old fashioned, really do value integrity and openness. For example, they’d be annoyed if the company held back news on say, a new Tier 1 distributor, if it was deemed material.
The writer still holds shares in Seeing Machines.