Replies to post #30359 on ERHC Energy Inc (ERHE)

[umbra]

Strassenheim, you deserve more than my original reply. Management, in certain companies, receives compensation that is far from "reasonable" given EPS. This does not apply to professionally-run companies. ERHC is now a professionally-run company. Again, the specifics of Mr. B.'s incentive package are not your concern.

[balance_builder]

Umbra....you said, "Your investment is your risk - in any venture. Never tie it in with management compensation. It doesn't work that way."

In the OTC/BB I think a wise investor MUST look at how management is paid. Investing in a company where management is paid overly handsome yet the company fails to grow...or even worse...loses value and shares are then issued to pay bill....is, and should be, a major concern to an investor.

I believe you attempted to clear this up with your mention that ERHC was now a professional-run company. The sp appreciation is there to verify that fact IMHO, however, we all know we've been here before and sank to new lows. That said, I would think investors...shareholders of this publically run company...should be fully made aware of the compensation package of OUR administrators. This information is very much our business and concern since we own a piece of this company. Let each individual investor determine whether or not they believe the compensation is worthy of the deal negotiated by Mr. Brandhuber. I would strongly believe the SEC requires this information to be made public to shareholders. Without said information, how can a shareholder determine "risk" in their investment. They can't.

I have a feeling, based on your posts, that Mr. Brandhuber made some awesome deals that will soon be revealed. I, for one, will believe he should be compensated well for his work if the deal(s) are sweet....but I also strongly believe his pay is very much our business since this is a publically run company.

[Lickety Split]

Umbra,


Wrong, its call BOD accountability to the shareholders. Most every successful fortune 500 company ties compensation directly to corporate success. I want to know that the management of the company has at least as much to lose as its investors. Percentage wise its a smart way to track performance. You saying it is not important is irrelavant to me. Of course each of us must guage our own level of risk. But, management accountability is a definite factor to be weighed when assessing that risk.

STrass

[balance_builder]

This seems to have "FELTANG" written all over it????

[kobiashi2000]

I have to respectfully disagree 100%, when you buy stock in a company, you're buying mgmt. There is a direct correlation between good mgmt and good shareholder returns. When someone is investing in a stock, in a company, and taking the risk, their also buying into the business plan that mgmt has setforth and is trying to execute on, and therefore shareholders bare the risk that those running the company are doing so in the most effective manner to maximize shareholder returns, mgmt also has a fiduciary duty to us shareholders to ensure that the company's business plan and assets are being used in the most effective manner to maximize shareholder value. Us sharehodlers have to trust that mgmt is always honoring their fiduciary duty to us and acting in our best interests. Shareholder returns are based on the effective execution of the business plan laid out by company mgmt. If Company mgmt can't execute, the business plan usually falters and the share price goes into the crapper. I'll give you that ERHC is a unique case, since its future isn't controlled by itself per se, but by its partners who control the drilling schedule, WB might have had a huge hand in negotiating the deals for blk 2,3,4, and he deserves compensation, however as an shareholder of ERHC and as WB's boss, I should be allowed to see whatever compensation he is receiving, and had he still been around this year, the new SEC regs would have assured that we would have. Public Companies now have to disclose all the minute details of senior mgmt compensation thanks to new SEC regs that went into effect recently.