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On the 20th April 2016, VCL published its monthly note. This included the publication of VCL's CEO, Martin Wood's monthly comment, as well as this month's five resource stocks of interest, which can be seen on the Short Note page, plus a topical cartoon.

"Executive pay seems to be in the headlines a lot recently. I am sure the bursting of the tech bubble will also lead to a further plethora of outraged headlines from corduroy wearing guardian journalists about 'silly' executive compensation packages.

I have a simple solution.

The Executives of each company 'CEO, COO etc.', form advisory companies with their own support staff. Theses advisory companies advise and manage companies for a fee. The fee is of course the classic 2 and 20 structure. The base number for the quarterly calculation is not, of course, funds under management, but instead, the market capitalisation.

The advisory company can advise /manage as many companies as it likes and covers its own expenses and support staff costs.

This removes the old shareholder fear of financing the CEOs 'first class habits' as all those sort of costs would be for the advisory companies book.

I suggest that any CEO and crew prepared to adopt this structure would be able to walk into any fund and have no concerns about being grilled on corporate burn rate and could concentrate instead solely on discussing the merits of the assets in the vehicle and the capital required to drive them to fruition.

Well run companies would make the advisory company buckets of cash, poor performers would see the associated advisory company return decline in lock step with shareholders.

 Management and shareholder hopes / fears / aspirations would be finally aligned, peace would rule the planets and herald the dawning of the age of Aquarius bringing sympathy and understanding to all.  Sort of.

As I write this I wonder if I will receive more abuse from CEOs seeing it as a means of reducing their compensation in difficult markets or from investors seeing it as a way of CEOs unleashing unlimited returns in corporate success stories.

It is, of course, both."