One mistake investors made when voting in favour of Hanover’s
re-structuring plan is that they did not include one clause into it,
Eric Watson & Mark Hotchin to put back the $200M (if I got the figure
correct) they have taken as dividend over the last 2 years. Directors
and managers should be remunerated if they perform well for their
shareholders and investors, however, given the situation of Hanover,
have they managed it well? Steve Job, for example, took only a $1 pay
due to Apple’s poor performance.
If one is so sincere in “helping” or “concerned” about their investors,
don’t you think they would have put back the monies they have taken
undeservely? Even if the two of them have put back the $200M, they will
still have many millions behind them, and they would have paid back
investors 40% of their capital already. Think about it.
To put it in another way, if investors had given me just $50M (10% of
Hanover’s funds) and I pay them back the principal without interest in a
year’s time, I would have made $1.8M nett after tax.