Very interesting how many companies have numerous directors on the list…. Not to defend any directors but I think one caveat that should exist is if a director already holds a certain % of the company.

Yes, indeed DT. There are a few companies that have multiple directors not really investing in the companies they “direct” with their own money, and shows that many of them are on the job for the salaries or options, and that they are not as aligned with investors that actually buy in the open markets.

Keep in mind, those are just from gold & silver companies featured in GDXJ. If we drilled down in the Junior space, it would be such a long list that it would discourage most investors from even considering investing in mining stocks.

Bottom line, if Directors were not inspired to pick up shares of their respective companies while they were “cheap” or “on sale” over the last 2 years, then either they are overly bearish still, or don’t think much of their Board of Directors and Management teams ability to go build value in the company the work for.

Personally, I’d be fine with some changes to many teams B.O.D. to bring in people that are active in buying the shares of the companies they helm, and more aligned with investors that they pitch on buying shares in their companies. We look into dozens of companies every week, and I see a lot of stale boards with lifestyle members, sucking money out of the company treasury, and not really putting much or any back into investing in the company’s future prospects. It’s a pretty big tell when management teams actually do invest their own money in shares, and is something I look for on SEDI.

Many corporate executives in mining companies hooked themselves up early with really cheap shares or gift themselves options in shares on a regular basis, and thus “own” a lot or have a nice percentage holding from yesteryear… However, that is not the same thing as taking their salaries pulled from the capital raised or the revenues generated from the company and actually plowing their own money back into shares of the company on the open market.

Sadly, for many corporate executives, especially people just thrown onto a Board of Directors for their “name drop,” they are just there for the income it pays them, they don’t put in but a few hours a week, and they aren’t really that aligned with shareholders.

As an industry, across the board, most mining companies, development companies, and exploration companies compensate their management teams, and especially their board of directors far too richly. I’d much rather see a smaller B.O.D. and have it filled with active, enthusiastic supporters of the company, putting in the hard work and buying shares when they suggest they are “really undervalued.” Let’s see less lip service about their low valuations, and instead have these C-suites put their money where their mouths are.

Hey there Lakedweller2. I actually do own a few companies on that list, but reduced my position in a few of them somewhat today, and rotated money into other companies I feel are doing good work.

Again, those were just on the companies held in the GDXJ. If we dove down into the juniors not included in that ETF, there would be plenty of skeletons in the closet of other mgmt teams that haven’t supported their stock through purchasing it the last 2 years while their valuations were so attractive.

Unfortunately the mining sector is chock full of executive teams that suck money out of the companies, and rarely put any to work backing the company’s share price performance. That’s the way it’s always been and will likely always be.