Thanks for your response. Yes, the Board of Directors are accountable to their shareholders. What type of job have they done regarding increasing shareholder value and determing the amount of money that should be paid to Ken McNeill, Shore Gold's CEO/President, for a job well done, or not?

In the United States and Canada the Board of Directors of a publicly traded company are responsible for Executive Compensation. Please find below a link to some information that may explain what they must consider in their decision making regarding executive compensation... checkout pages 5 -7 from the document in this link to get a better idea of how that works.

THE BULLET-PROOF BOARD A Guide to Avoiding Directors5 Liability

www.mcmillan.ca/.../MKoehnen_The%20Bullet-Proof%20Board-Up...

From what I've read the Board of Directors of Shore Gold represent their shareholders and are tasked with the responsibilty of hiring, firing, and ensuring that they can justify what their executives are paid. How have they done?

Below please find some information that arkmen, one of our posters on the Investor Village board, posted on January 27, 2012... Regarding compensation to Ken McNeill... information from Shore Gold's Notice and Circular for the 2010 AGM may explain Executive Compensation... of interest pages 11 - 15.

In part from the document:

“As part of the assessment, the Compensation Committee also considers the change in the Corporation’s share price when reviewing senior executive compensation. The Corporation analyzed the movement of the following companies’ share prices when comparing the Corporation’s share performance during the past year:

Diamonds North Resources Mountain Province Diamonds Inc. Shear Minerals Ltd. Firestone Diamonds Inc. Pele Mountain Resources Inc. Stornoway Diamond Corp. Gem Diamonds Ltd. Peregrine Diamonds Ltd. Vaaldiam Resources Ltd. Harry Winston Diamond Corp. Rockwell Diamonds Inc.

The above group has been chosen so the Corporation can track how companies in the diamond industry generally perform. These companies range from small exploration companies to large producers and retailers of diamonds. The average change in share price for these companies, from January 1, 2010 to December 31, 2010, was an increase of 20 percent. The Corporation’s share price decreased by 5 percent over the same period.”

Full document available with this link... http://shoregold.com/_resources/financial/2010/Notice_and_Circular-Shore2010.pdf

The independent SGF Compensation committee must have worked very hard examining these companies in order to determine fair compensation for their CEO, right?.

Let’s see, here is a list of 2010 CEOs compensation without stock options:

MPV CEO Patric Evand -$420k in cash and bonuses

SWY Matt Manson -$210k in cash and bonuses

PGD Eric Friedland -$110k in cash and no bonus.

Rockwell Diamonds John Bristow -$290k in cash and no bonus.

SGF Ken McNeill received $710k in cash and bonuses.

You see, Ken has nothing to do with being paid anywhere from almost 2 to 7 times more then CEOs from our peer group. It is the Compensation Committee, stupid!

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The lack of reliable updates, continually missing, and than changing promoted milestone dates by Ken McNeill and his management team over and over again has resulted in Shore Gold's crappy share price over the last 4+ years and yet Ken Mcneill continues to get overpaid for a job not well done. JMHO

Most of Shore Gold's shareholders have become very dissatisfied with the performance of Ken McNeill and his management team over the last 4+ years. With the help of the Shore Gold Shareholder's Association the time for change is now. If you agree please contact Brent to let him know that you also want to see a change. TIA His contact info is brent.hab@sasktel.net