Icon directors held to task by cautious investors

Written on the 8 June 2010

CAUTIOUS shareholders of Icon Energy have voted against a proposed increase in remuneration for directors, despite the junior explorer’s potential $32 billion export deal with China’s Shenzhen Sino Industrial Development Company.

At its recent AGM the board sought to increase the current pay cap for non-executive directors from the current cap of $250,000 to $750,000, but the move was overwhelmingly shut down by proxy voters. Two extra directors would cost an additional $150,000.

Outgoing CFO Ray McNamara, says adept corporate governance could be stymied if the board could not expand its expertise.

“I’m a little mystified as to why they (shareholders) would not be in favour,” he says.

“Normally we would expect a company of Icon’s size to have five non-executive directors on the board, we currently have three. With me stepping down from the board there will be no-one with formal financial qualifications. We are not going to get good governance if you want to pay the board as a $100 million company instead of a $300 million company.”

CEO Ray James, who has 21.1 million Icon shares equating to around $7 million, admits the resolution was not well understood.


“That’s obvious. It’s a shame not to hear that resolution passed. There’s no option but to add another executive director or wait until the next AGM,” he says.

“There is no intent to alter directors’ fees other than the normal process. It’s not the case that directors will double their pay.”

Icon’s core business is focused on the coal bed methane gas reserves in permit ATP 626P in the Surat Basin, near Dalby. The biggest hurdle now facing the company is to find the gas and to reignite shareholder confidence.

“Lydia is right on the brink of becoming commercial. We have to kick the goals along the way. There are milestones everywhere but people forget that only three to four years ago, there was nothing in Queensland gas (CSG),” says James.

Icon continues to strengthen after picking up the former City Pacific headquarters in what was considered a firesale last year for $9.5 million.


Latest News

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

VOLATILE INDUSTRY CLIPS FLIGHT CENTRE'S WINGS

DESPITE achieving record sales in the first half, Flight Centre Travel Group (ASX: FLT) profit has suffered the ef...

ARDENT TAKES $95.2 MILLION HIT FROM DREAMWORLD TRAGEDY

ARDENT Leisure has taken a $95.2 million write-down on the value of its Dreamworld theme park following the tragedy t...

AGENT EXITS, LOW LISTINGS HURT MCGRATH

PROFITS have dived 72 per cent at real estate group McGrath (ASX:MEA) to $2.4 milllion on the back of low property...

Related News

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter