Vince Cable, the business secretary, wants to make it easier
for ordinary shareholders to prevent FTSE 100 bosses being awarded huge sums if they are not delivering exceptional results.
Personally, I
think ordinary shareholders have a claim on the vast majority of cash etc. — I can't confirm that though — but it's worth noting TOT owned a v similar EUR 97 million of cash & investment property back at the de-merger date.
Convertibles & other types of preference capital are somewhat similar (and some companies include them in leverage ratios)-- arguably they're equity / non-callable liabilities, but they also increase risk / leverage
for ordinary shareholders, so the same haircut's acceptable here too.
For the purposes of the EPS calculation only, the net profit for the year attributable to
ordinary shareholders has been adjusted to include the coupon, net of tax, on the perpetual bonds.
The ordinary shareholders are not entitled to participate in the appointment of directors, but in most other respects rank pari passu with the other shareholders.
There's a way to generate 10 % -30 % annual yields... taking on less risk than
ordinary shareholders.
the sitemaster affair brought home the fact that there is no protection for
the ordinary shareholder when invested on the ISEQ
As dividend paid on redeemable preference shares would have been already accounted for in arriving at the net profit of ABC PLC, no further adjustment is required in the calculation of earnings attributable to
ordinary shareholders.
There is an unusual A class of shares, but these are being steadily reduced and are not dilutive in any way to
ordinary shareholders.
And all arrears had to be cleared before
any ordinary shareholder distributions could be paid.
After that, anything left over goes to the preference / convertible holders, with some occasional dregs trickling down to
ordinary shareholders (PIs often don't grasp how rarely this happens...).
They see how much better things could be for the majority of stakeholders and that incompetence, inefficiencies and bad practices serve in the interests of very few people, not including employees,
ordinary shareholders and customers.