BRN Discussion Ongoing

[Diogenese]

Hi Dingo

Thanks for the feedback, always have enjoyed your posts.

I don't think ive contradicted myself here. I've just tried to show why this topic is difficult. There's two sides to it and there's a need for balance.

There's many reasons why the directors should receive performance shares, some of which I've outlined in my most recent post.

The issue is when the number of performance shares are excessive and the KPI's to obtain them are rudimentary such that they're effectively earned with no effort at all. We can't make judgement on that side of things because we don't know what the KPI's are, but the quantum in my mind is not excessive and seems to align to industry.

To clarify, I have no issue with brainchip's current approach to remuneration.

I just don't agree with Manny's ongoing narrative in convincing shareholders that Sean and co are accumulating in the same sense that us retail shareholders are simply because they haven't sold all of their performance shares lol.

I would love to see the entire board buy a wack of shares on market together to send a collective signal to the market that there's value in brainchip. They've had the chance to do this from $2.34 all the way down to 15c and haven't taken it. I don't think selling 'some' of their performance shares but not all fits the bill in this regard.

Do you?

Hi Sera,

The opportunity to buy was probably stymied by the prohibition on insider trading.

The eternal bugbear of the BRN shareholder is the ubiquitous and seemingly eternal NDAs. The senior executives and most empyees would be aware of the contents of one or more of these. There would not have been a moment when they were not aware of insider information.

For example, the Raytheon thing seems to have been ongoing since at least mid 2023. Whatever is happening with Mercedes and Valeo goes back even earlier.

The message from management has been unrelentingly enthusiastic, going back to the hockey sticks, which seem to have been on ice for a while now.

 

[SERA2g]

Hi Sera,

The opportunity to buy was probably stymied by the prohibition on insider trading.

The eternal bugbear of the BRN shareholder is the ubiquitous and seemingly eternal NDAs. The senior executives and most empyees would be aware of the contents of one or more of these. There would not have been a moment when they were not aware of insider information.

For examole, the Raytheon thing seems to have been ongoing since at least mid 2023. Whatever is happening with Mercedes and Valeo goes back even earlier.

The message from management has been unrelentingly enthusiastic, going back to the hockey sticks, which seem to have been on ice for a while now.

I was actually drafting a follow up response to dingo to raise this very problem as an additional issue that would need to be considered.

In any case, every dog has its day and I am positive the brainchip shareholder base dog will have its day in the not too distant future.

It'll then have its day again and again and again over the next 30 years as the company grows and fast becomes the world's leading provider of edge AI technology.... unless of course NVIDIA throw a few billion at us before we get there.

 

[FJ-215]

All the talk on RSU's had me revisit the last Annual Report.

BRN Annual Report 2023

Page 15 (ish)

"REMUNERATION REPORT

Pay for Performance. The Group instituted short term and long-term incentive programmes for all
executives in 2023. The 2023 short term bonus programme is based on the achievement of company
and individual performance targets, with payouts focused on the achievement of target bookings,
product development milestones and adherence to budget. The LTIP performance metrics are all three-
year company goals and are focused on bookings, the conversion of bookings to revenue and the
company share price as of the last day of the year."


Feel a bit shit now!!

 

[Space Cadet]

Hi Sera,

The opportunity to buy was probably stymied by the prohibition on insider trading.

The eternal bugbear of the BRN shareholder is the ubiquitous and seemingly eternal NDAs. The senior executives and most empyees would be aware of the contents of one or more of these. There would not have been a moment when they were not aware of insider information.

For example, the Raytheon thing seems to have been ongoing since at least mid 2023. Whatever is happening with Mercedes and Valeo goes back even earlier.

The message from management has been unrelentingly enthusiastic, going back to the hockey sticks, which seem to have been on ice for a while now.

NDAs have been holding back the SP, sure. The company have said, and I am paraphrasing here, timeframes to deals and market are longer than anticipated.
Anyway my point is that IMO Brainchip have been staunch believers and pushed NDAs as hard, if not harder than other companies. I believe that they have been walking a fine line as they do not want a big player coming in and taking us at a low ball price. They want to build a company and get best value. Sure we will probably be taken over at some point but this way we can get decent returns. I would love to be able to go the whole way but probably unrealistic. What I do want after 10 years as a shareholder is a decent return. 2 or 3 deals such as TCS, Raytheon would make this company. I also don't have a problem with access to more money and timing is interesting. We must have strong financials to deal with the big boys. Interesting times. RTX is very interesting and full of promise. After doing a bit of research I find that they are looking into neuromorphic in a number of areas. Just hope it is us. JIMO and my rambling thoughts.

SC

 

[DingoBorat]

All the talk on RSU's had me revisit the last Annual Report.

BRN Annual Report 2023

Page 15 (ish)

"REMUNERATION REPORT

Pay for Performance. The Group instituted short term and long-term incentive programmes for all
executives in 2023. The 2023 short term bonus programme is based on the achievement of company
and individual performance targets, with payouts focused on the achievement of target bookings,
product development milestones and adherence to budget. The LTIP performance metrics are all three-
year company goals and are focused on bookings, the conversion of bookings to revenue and the
company share price as of the last day of the year."


Feel a bit shit now!!

More shares will be issued, if the share price, or "value" of them is lower..

 

[FJ-215]

More shares will be issued, if the share price, or "value" of them is lower..

No,

I would have thought you don't get your 'performance shares' if the SP has tanked at year end.

Nice Santa Claus Rally!!

 

[DingoBorat]

No,

I would have thought you don't get your 'performance shares' if the SP has tanked at year end.

Nice Santa Claus Rally!!

The fact is you don't know and you're jumping to negative conclusions FJ..

Don't be a wet sock

 

[FJ-215]

The fact is you don't know and you're jumping to negative conclusions FJ..

Don't be a wet sock

 

[DingoBorat]

Don't let the Black Dog get ya FJ

Awesome song!

 

[manny100]

All the talk on RSU's had me revisit the last Annual Report.

BRN Annual Report 2023

Page 15 (ish)

"REMUNERATION REPORT

Pay for Performance. The Group instituted short term and long-term incentive programmes for all
executives in 2023. The 2023 short term bonus programme is based on the achievement of company
and individual performance targets, with payouts focused on the achievement of target bookings,
product development milestones and adherence to budget. The LTIP performance metrics are all three-
year company goals and are focused on bookings, the conversion of bookings to revenue and the
company share price as of the last day of the year."


Feel a bit shit now!!

Table 7 page 22 of the 2023 report shows the % of performance related pay for the following KMPs.
HEHIR 13%
PVM 48%
Mankar 45%
Scarince 36%
No other KMPs received performance pay including T Viana.
We see deals as performance but the BOD in a business building phase in 2023 would not see as the key criterion.
For example PVM and Mankar may have played a significant role in GEN 2 etc development.
Non key staff may have also met their Department targets.
2024 Annual report will be interesting remuneration reading.
The Frontgrade and USAF deals were completed late and no doubt there was performance pay hurdles on those.
BRN is the sort of Company where when the dam bursts and deals and revenue start flowing in as a matter of course we could see Sean on huge US $$$$ plus pa..
Pay will be in accordance with US standards which will likely see Aussie holders jaws drop.
As an aside Simply Wall Strxxt shows the BRN employee Long term incentive plans holds 8,923,728 shares so we are big on incentives for staff.

 

[FJ-215]

Don't let the Black Dog get ya FJ

Awesome song!

No Dogs here DB. Which reminds me.......

One of my fav bands.....

 

[FJ-215]

Table 7 page 22 of the 2023 report shows the % of performance related pay for the following KMPs.
HEHIR 13%
PVM 48%
Mankar 45%
Scarince 36%
No other KMPs received performance pay including T Viana.
We see deals as performance but the BOD in a business building phase in 2023 would not see as the key criterion.
For example PVM and Mankar may have played a significant role in GEN 2 etc development.
Non key staff may have also met their Department targets.
2024 Annual report will be interesting remuneration reading.
The Frontgrade and USAF deals were completed late and no doubt there was performance pay hurdles on those.
BRN is the sort of Company where when the dam bursts and deals and revenue start flowing in as a matter of course we could see Sean on huge US $$$$ plus pa..
Pay will be in accordance with US standards which will likely see Aussie holders jaws drop.
As an aside Simply Wall Strxxt shows the BRN employee Long term incentive plans holds 8,923,728 shares so we are big on incentives for staff.

Read it again Manny!!!
How many years of service had each of these people given to the company at that point......

And Who is this........T Viana?????

I don't see him listed in any company accounts..

Edit.....

My bad.......I forgot you can't spell Antonio

 

[DingoBorat]

No Dogs here DB. Which reminds me.......

One of my fav bands.....

You most probably know, but the "Black Dog" is a direct reference to Churchill's manifestation of when he was depressed (and he's actually mentioned in the song).

Not really my style, but it's in my algorithm now, so maybe it will grow on me, as it's likely to pop up from time to time, like all these bloody ice skating videos..

Thanks Bravo

 

[FJ-215]

You most probably know, but the "Black Dog" is a direct reference to Churchill's manifestation of his struggle with depression (and he's actually mentioned in the song).

Not really my style, but it's in my algorithm now, so maybe it will grow on me, as it's likely to pop up from time to time, like all these bloody ice skating videos..

Thanks Bravo

Not their best....do have some quirky stuff that is worth a listen.

Every song has a message.......that you may or may not agree with....

Life is a journey

 

[FJ-215]

Not their best....do have some quirky stuff that is worth a listen.

Every song has a message.......that you may or may not agree with....

Life is a journey

And sorry to bang on about the Manic Street Preachers.....but there is a least an Australian connection....

1) It's the title of one of their songs......

2) They wrote some songs for Kylie Minogue..

This one made the charts ... (lead singer for MSP in the clip)

And kinda BRN related if you hold shares.......



I'll shut up now.....

 

[manny100]

Read it again Manny!!!
How many years of service had each of these people given to the company at that point......

And Who is this........T Viana?????

I don't see him listed in any company accounts..

Edit.....

My bad.......I forgot you can't spell Antonio

Ok, he gets called Tony at the AGM. My bad.
An important table is table 8 on page 23 which lists total shareholding of KMPs.
The total at 31/12/23 was 245,858,364.
With around 2 billion SOI that puts insider holdings of those employed at that time at 12.3%.
That is an important takeover block on its own.
Then add holdings of ex employees such as LDN , Osserian etc Its way higher.