How Pallinghurst bosses raked in the loot
Share price isn't doing that great, so why the fat pay cheques?
Shareholders in mining investment company Pallinghurst Resources have two particular grievances, neither of which, they feel, was resolved by management’s assurances after the recent annual general meeting.
The first is the underperformance of the share price, and the second is excessive management remuneration.
Shareholders who have held on since the listing in 2008 at R10, to last week’s share price of 300c, are cradling a 70% capital loss and received no dividends, while members of the investment management entity (headed by chairman Brian Gilbertson and CEO Arne Frandsen) have earned generous fees. "Shareholders and management are just not on the same page," a shareholder says, speaking on condition of anonymity. "Management are looking after themselves, not shareholders."Another says Pallinghurst’s plan for a new structure does not go far enough to satisfy shareholder concerns and further developments are likely. That possibility, rather than approval of Pallinghurst’s new plans, may help to explain the recent firming in the share price. Pallinghurst recently successfully garnered the required number of acceptances to succeed in its bid for all the shares of coloured gemstone miner Gemfields. Pallinghurst shareholders liked the deal but the meeting to approve the Gemfields transaction ...
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