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Not a level playing field

Analysing companies' finances and value from their financial statements using ratios and formulae
OhNoNotimAgain
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Not a level playing field

#262515

Postby OhNoNotimAgain » November 6th, 2019, 9:41 am

Anyone who believes executive compensation schemes are not biased in favour of the executives and against shareholders only needs to read this from the ABF annual report.

This year we have recognised an
impairment charge of £65m in respect
of our UK bakeries following the loss
of a key contract. This has been
charged ‘below the line’ of adjusted
operating profit and does not impact
incentive outcomes.

monabri
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Re: Not a level playing field

#262783

Postby monabri » November 7th, 2019, 1:41 pm

Let them eat cake, our bonus is in the bag !

TheMotorcycleBoy
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Re: Not a level playing field

#262832

Postby TheMotorcycleBoy » November 7th, 2019, 4:53 pm

OhNoNotimAgain wrote:Anyone who believes executive compensation schemes are not biased in favour of the executives and against shareholders only needs to read this from the ABF annual report.

This year we have recognised an
impairment charge of £65m in respect
of our UK bakeries following the loss
of a key contract. This has been
charged ‘below the line’ of adjusted
operating profit and does not impact
incentive outcomes.

Weird mind you, since wherever their accountant places this charge, surely it would in itself reduce EPS which is the famous incentive metric.

However (must fess up that I've not read the referred above AR!), now I read more of your italicised I'm given to understand, that if they incentivise based on (their interpretation of) ROCE and they get the numberator (operating profit) from "above the line" mentioned in the excerpt, then this indeed is a tad underhand. :evil:

Matt


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