Pom down under
Top 20
Who was accumulating before Xmas?
BRN Discussion Ongoing
- Thread starter TechGirl
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FiveBucks
Regular
HopalongPetrovski
I'm Spartacus!
Pom down under
Top 20
Does anyone know if it was retail FOMO or other?Pretty sure Davo was keen.
Think he got a tip from the Flotsey Mules.
HopalongPetrovski
I'm Spartacus!
Dunno Pom.
There was a lot of speculation about expected announcements on all the channels so I recon some retail and perhaps even a bit of soph. FOMO was invoked.
We did wind up getting some good announcements but nothing that shot the share price into the stratosphere and now that CES has come and gone, some reallocation is to be expected I suppose.
I think we are now at the point where it will take a contract with some significant ongoing revenue to really get us moving.
Till then its back to the hurry up and wait.
Hi Plebby, extract from earlier research on this topic.
Fact both Sean and ChaIrman Tony V took circa 81% plus of their real pay in equity in 2023. See the Annual report. Likely similar result in 2024.
They do via conversion of RSU's which avoid insider trading regulations. Smart way to incentivize employees and build insider holdings.
Fact both Sean and Tony V are net accumulating and hold enough to put them in the top 50 holders. See recent Director's notices.
Fact. Sean has 6 million RSU's which he can elect to take over time instead of cash pay. If he keeps taking equity instead of cash pay he will end up in the top 20.
Fact 15.5% - to 16.6% of SOI are held by insiders. See Yahoo Finance and Simply WS.
Assumption: Sean, Tony and insiders know a lot more about what is to come with BRN than holders and posters.
On top of the above Insiders hold enough to block any unwelcome takeover offers.
Sean hinted on further positive news to come on a recent podcast. Not sure how big the deals will be. Hopefully Tata sign up some time this year as that could be a profitable overnight deal.
Recent Frontgrade and USAF deals give confidence as does our new partners with our Edge Box.
Connection with RTX a huge defense supplier. Bascom Hunter.........................................All adding up.
SERA2g
Founding Member
Hi Manny
I think you are taking a very rose-coloured glasses approach to the way that RSU's work.
Don't quote me on this as I have not looked at the remuneration reports from the latest set of accounts for some time, but Sean's salary is circa gross $400K. On top of this, Sean is eligible to receive performance shares which are issued on meeting KPI's.
We are not provided information surrounding the KPI's that need to be met. Some KPI's might be walk ups such as 'attend all 12 monthly meetings', others will be 'expand ecosystem by x% or 'generate net sales of $500m'.
Some KPI's will be met, some will not. The restricted shares are issued upfront and then ordinary shares are awarded upon KPI's being met, or cancelled at the conclusion of the KPI period set by the board.
You've previously posted the narrative that Sean is accumulating because he is selling 'some' of his shares to cover tax obligations, but not all of them.
Sean's shares are issued to him for FREE. $0. Nothing. He then has to pay tax on the discount (full value of the shares at date of issue). I therefore understand why directors then sell some of those shares to fund their tax obligations.
It is a big reach to then argue Sean is accumulating because his shareholdings have increased.
Sean has no skin in the game with respect to the performance share's he's issued. He isn't buying $50K shares on market like we would have to. He has received them for FREE. He then sells $10K worth of shares to cover an upcoming $10K tax liability in relation to those shares. Ergo, Sean has FREE-CARRIED $40K worth of shares. With tax having been paid by share sales, he's literally out of pocket $0 for the remaining shares.
If he received $50K worth of shares for FREE and then paid the corresponding tax liability from his own cash, it would be fair to argue that he has $10K skin in the game. This simply is not the case. Sean and the other directors always sell shares to cover the tax liability.
As far as I'm aware, Pia is the only director to have purchased shares on market in the last few years.
All of the above aside, we want to attract top talent and it would be fair to say that US based CEO's of tech company's would receive significantly more than $400K for their role, so I do understand the need to include performance shares in the overall salary package. This works well for shareholders as the directors have a long term incentive to increase the value of the company and therefore shareholders capital.
The one painful point for people like Sean is that shareholders tend to jump on them when they sell shares to cover tax, however, there's no announcement when a director chooses not to sell shares and personally wears the tax, leaving the decision a thankless one.
Fullmoonfever
Top 20
Hi Pom,
This is from the other site courtesy of a poster by the name of DimDim.
BRN Broker Data Analysis
First, let me give you a bit of perspective over the year to see where we are now. The yellow line shows the trend of share accumulation by 4 retail brokers combined. As you can see, about 100M shares were accumulated by retail brokers over the year.
Top sellers and their accumulation/distribution trends:
- FinClear Execution
- Bridges
- Barrenjoey
Now, let's have a closer look at broker data since October.
Top buyers:
Top sellers:
Retail broker accumulation on the chart:
What's interesting here is that selling by retail brokers started from Dec 23. This means that pro brokers pushed the price up. Very nice pattern, especially combined with the break of the fallen trendline.
Who pushed the price up:
- Goldman Sachs
- Macquarie Securities
- Morrison
Interesting development. Looks positive. Going to keep an eye on it.
I don't agree that shares that are issued as part of a remuneration package are isued for free. Just like the cash salary, they are issued for services provided by the recipient. In fact they may be tied to specific performance targets.
toasty
Regular
I'm now entering my 8th year as a shareholder in BRN and I must say I'm REALLY tired of nothing but dot joining and guessing about the current state of play of the company. Its all become VERY tiresome and I'm of a mind to sell the lot (yes, its a lot) if/when the SP manages to crawl above $1........ not good enough from management.....at all!!!
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FJ-215
Regular
I preferred stock options over RSU's. Have a look at our past Chair, Manny Hernandez. He was granted 8M options that vested over a period of time with a strike price of 16.5 cents. Basically a pair of golden handcuffs to keep him with the company.
What did Manny do? Let them lapse and then argued that he should get the 8 million shares as RSU's and turned the handcuffs in to a golden parachute. Apparently this was in the best interests of us shareholders.....
Hi SERA2g, no reach at all or rose coloured glasses.. Share based payments are the same as salary sacrifice and are added to income as such in the audited reports and PAYG certificates.
That is how they are treated by accepted Accounting and Taxation principles - part of their pay structure. Why would you think otherwise?
If you salary sacrificed for a car or shares its included as income and taxable - as that is what you earn. Tax on employee issued shares is a little less harsh here though than in the US.
Why would you buy on market if you get shares via the employer and also avoid any insider buying potential issues? Its common practice in the US. Although get the timing right and you may get them cheaper on market?
See link to 2023 Annual Report.
See remuneration report (Audited) note 7. page 21. Realized Remuneration.
T Viana Salary $111255 Share based payment $698,146 Total $809401 NIL Performance based payment.
S Hehir Salary $456,781 Annual Leave $34,614 Superannuation $9,900 Share based payments $2,079,606 Total $2,580,801
Sean Hehir PERFORMANCE BASED PAY WAS 5%.
See also Directors Share Notices.
DingoBorat
Slim
You should really give up your day job, if you have one FMF..
Always Great analysis of these kind of things, when you put your mind to it
Fullmoonfever
Top 20
Hey DB,You should really give up your day job, if you have one FMF..
Always Great analysis of these kind of things, when you put your mind to it
I'd like to take the credit but is DimDims analysis as posted at the other place with his/her broker data.
I thought I'd share it here for those that don't frequent the other place.
Pom down under
Top 20
I’m happy for the SP to move in a sidewards direction as my super is due soon
, but yes your right we need revenueHi SERAg2, hope my previous post did not seem harsh. Its just that many moons ago i worked for a short time in a team pulling Annual Report apart. So it all seems straight forward to me.
To be honest its refreshing to see a Chairman and CEO taking so much of their pay as equity. Usually they rip as much cash out as they can.
To be honest its refreshing to see a Chairman and CEO taking so much of their pay as equity. Usually they rip as much cash out as they can.
DingoBorat
Slim
I understand you're just trying to keep it real here Sera and Manny "can" sometimes be a little overzealous, in his praise and promotion of BrainChip (I know "I'm" never guilty of that
..).But I thought he backed up his argument to Plebby, very well.
And you kind of contradicted yours badly here..
"All of the above aside, we want to attract top talent and it would be fair to say that US based CEO's of tech company's would receive significantly more than $400K for their role, so I do understand the need to include performance shares in the overall salary package. This works well for shareholders as the directors have a long term incentive to increase the value of the company and therefore shareholders capital.
To say they got their shares "for FREE" is basically the same as saying Peter Van der Made and Anil Manker, got "their" shares for free, because they didn't buy on market..
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HopalongPetrovski
I'm Spartacus!
Yes.I’m happy for the SP to move in a sidewards direction as my super is due soon
View attachment 75887
All the other stuff is good and necessary and affirming, but what is required finally, is ongoing revenue to prove we really are, a commercially viable entity.
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