Consort Medical 6 September 2017

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Disclaimer: These are excerpts from student assignments conducted as part of a Corporate Finance class. The opinions represented do not necessarily agree with mine. I do not vouch for the quality of the recommendations or the accuracy of the numbers. Follow the recommendations on your own risk.

Students wonder if CFO pay well-balanced and sufficiently attractive to keep Paul Hayes motivated on the long-term? Recommend increasing salary, best with long-term incentives $CSRT

Students recommend expansion on EU mainland in light of Brexit

Director candidates look good to students, especially applaud appointment of Mr Paul Hayes

Proposal Excerpt of Student Recommendations
For Against
(2)Receive accounts and reports
  • The auditor made some useful remarks concerning the valuation of the goodwill etc. Should take these into account next year
(3)Director elections
  • Directors are long-standing professionals in the industry, plenty of experience
    Stepping platform for Paul Hayes to put his years of experience to good use
(4)Say-on-Pay
  • CFO significantly less paid than CEO. Given the previous CFO’s departure enough to keep Paul Hayes motivated?
(5)Capital increase / buyback authorization
  • (Equity issuance)Debt is on the high side given current assets and cash flow levels. New shares suggested for new investment and expansion
    (Buyback) Can improve discipline of managers and corporate governance by reducing excess cash
  • (Pre-emption rights)Equity issuance should include pre-emption rights to avoid dilution
    (Buyback) Not the right time and I don’t think they have the means for buyback: not sufficient cash
    (Buyback) Buybacks are bad signal on plans to invest

Link to proxy statement:

http://www.consortmedical.com/wp-content/uploads/2015/09/Consort-Medical-NOM-2017-Proof-4-LR.pdf

 

Video:

https://v.qq.com/x/page/q05370039pe.html