UK 04:19 Saturday, 26 September 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Special thanks go today to the directors Getech (GTC). For a while, I’ve had in mind a new feature looking at excessive or unjustified executive compensation. It is no wonder that AIM has the reputation it does for rewarding corporate failure so generously. Too many listed companies appear to be run solely for the benefit of incumbent directors. This is a key part of the reason that buying and holding AIM stock can be such a suicidal investment strategy. Unfortunately, little will ever likely be done about this issue so all we can do is report it as we come across it. The good news is that director behaviour in paying themselves can be one of the best indicators for identifying which stocks to avoid (often like the plague!). This new feature will hopefully go some way in helping you avoid one of the more treacherous pitfalls on AIM. Welcome to Directors at the Trough.
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Comments
wildrides
Its another Westminster . Cant close a deal for love nor money .
At least they dont spend all day name dropping ….which is a slight positive .
Barge pole please.
J P Spaghetti
Great idea for a new feature! It’s seemed bizarre to me for quite some time now that more PIs don’t take direct action together to remove directors who behave in this way. I gather all that is required for this is a majority vote (so just 50+%) at a GM, and that – unlike in the US – a specific reason doesn’t have to be given. Providing the free float is high enough, then, and there is no contractual small print preventing this (I would have thought the right to remove directors to be ‘inalienable’, though), why is such behaviour not curbed and punished more often through this course of action?!
Ben Turney
@wildrides – possibly a little harsh, but we will see.
@JP – I think the main problem is that coordinating a vote among private investors is like herding cats