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Directors’ Pay and Galliford Try – Apathy reigns

The pay of directors in FTSE100 companies continues to power ahead. Up 14% in the past year according to Income Data Services, based on median total remuneration.  This is six times more than the average earnings of all employees. The large increase has been driven by rises in the value of LTIPs (typically share-based pay-outs based on performance measures). These payments are often not at all obvious in Remuneration Reports at present. A good example is Galliford Try, the building company, whose AGM ...

The level of speculation in AIM stocks

How much speculation is there in AIM stocks? Quite a lot based on some figures recently published in a FinnCap newsletter. “Speculation” might be defined as a short term bet on a share price rising or falling. That’s the opposite of “investment” where someone takes a view on the medium to long term returns from investing in a company. These are the figures published by Finncap for the ten most traded AIM stocks in September – based on the percentage of the overall ...

Why should investors not see performance fee details at Northern VCT?

Northern Venture Trust (a VCT) introduced a management performance fee at a General Meeting on the 18th July. They did not have one before even though they had outperformed the very similar Northern 2 VCT over the last ten years who do. I spoke against the introduction of such a fee at the General Meeting, and raised questions about how the fees were to be calculated, as did another shareholder. The calculations were not at all clear from the meeting notice. As ...

Is this a record – 950 share certificates?

Yesterday was the AGM of Crown Place VCT. A somewhat unexciting meeting in some ways (a full report can be found here), but it did give me the opportunity to meet someone who holds 950 share certificates for different companies. This is not just unusual, it may be a record. The shareholder had already been to two other AGMs earlier in the day. He apparently handles probate matters for individuals which accounts for this. Another shareholder asked me about the current dematerialisation ...

Delcam succumbs to takeover offer

Software company Delcam has announced that it is recommending a cash offer of £20.75 per share from Autodesk for the company. That suggests an exit p/e of over 33 based on current year earnings forecasts which is surely enough to gain shareholder acceptance (they already have commitments to vote in favour from over 45% of shareholders). It rather demonstrates the high valuations currently placed on growing and profitable technology companies. ShareSoc first covered this company in our May 2011 newsletter when the ...