Hi, I'm not sure I was posting here in 2012. In any case, my general view is pay management well and give them a serious incentive to increase the stock price over the long term. Typically using options that vest over time in order to avoid short term games for management to make money. I don't think they need to be compensated in so many ways.........
6. RAS takes over more properties via negotiation (and a bit of cash) from its long list of second mortgage loans keeping Rait 1&2 "loaned up."
7. Rait prepays its secured loans owed to Tabernas and recycles the $140 million of collateral.
8. IRT issues bonds to fund more property purchases.
9. Rait uses second mortgages issued in recent years ( that are on the balance sheet unsecuritized) as collateral to get a short term line of credit to keep the lending going.
$1 million + cash bonuses are frugal. You must have the newer version of the dictionary. I'll check with Amazon to see if I can catchup.
I find your comparison between current management and the Cohens to be inadequate. It is a bit like your complaint about other posters picking narrow specific dates to show how poorly RAS has done.....
Use the wrong measuring stick and one can get whatever result one wants.
You want to compare today to what? A company with $15 billion+ in assets, what some have called a "criminal in exile"and lots of smoke and mirrors?
Yes, compared to that, Scott is underpaid.
Compare RAS to a $3 to $4 billion bank. RAS is a real estate finance company....unregulated bank. You have compared it to both a pawnbroker and a bank in the past!
If we are lucky, Scott has been very conservative in the 2015 presentation. Setting himself and the other executive up for some high bonuses by setting the bar low. This was suggested in an earlier thread. Of course this would be a "smart" and perhaps clever move. Lets hope that Scott has presented low numbers and the company exceeds them by quite q bit.
Did Scott build RAS out of the goodness in his heart? Did he do it for you and me?
Scott got paid well all along the way. Just as "no dividend was ever missed" no paycheck was ever missed. When Scott took over at the downturn, did he get awarded options at low prices.
I work long and hard, perhaps harder than Scott. I do great things for the company I run. Trust me when I tell you, Scott is handsomely compensated for his efforts. I want to work for any company you own stock in.......because you want to pay executive excessively.
Management of public companies are paid relatively fat salaries for doing they jobs, which includes improving revenues and all possible metrics. Usually management is provided further incentives in the form of stock options in order to strongly hitch their wagon to the common shareholders.
It seems outrageous that they should further be bribed to deliver good numbers by being given enormous Cash bonuses. Isn't it their job to strive to get those numbers as part of the regular job? Don't the options drive the greed enough to work the extra hours?
Shouldn't teachers be given bonuses for doing their jobs? Shouldn't garbage men get cash bonuses for cleaning up the nyc streets?
Davis, I have ready your thoughts on this board for close to three years. I haven't been posting as actively as I have in the past, but I continue to read actively.
In the past your have stated the common stockholders are the owners and the management's interests should be more aligned with the common shareholder than with any other stakeholder. Further you have argued that if the common shareholder does well, the management deserves to do well too. Bravo. I agree.
This week, the company has decided to announce a CASH compensation plan that, while based on some actual financially based metrics, will almost certainly guarantee management bonuses even if the common shareholder does not make out well. Davis, you talk out of both sides of your mouth. No two ways about it. You need to decide if you are going to defend the company as a common shareholder, or as a management lackey. Your decision.
APTS would appear to have yet a different model. Lending to builders during the construction phase is a highly unique specialty. It is unlikely that RAS currently has the properly trained personnel on staff to do this type of lending. RAS has stated again and again that in its bridge lending business it is lending against cash flowing properties. These are lightly transitional properties that RAS is taking as collateral.