TYHEE GOLD CORP
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Message: Compensation Comments regarding Tyhee
A poster on another board (SH) voiced their concerns with some of Tyhee's compensation.
In order to show that this board is allowing both sides of an argument I took the liberty of sending those concerns to the President of Tyhee. Dave Webb was kind enough to take the time to address those concerns and I will post his replies here in a few minutes. But first, I will post the "word for word" comments that I forwarded to DW for his comments. These are the posters words, not mine (they are not edited but I did shorten them in order to keep his reading time to a minimum.) I also sent him the direct link to the original posts so that he could read the context of the comments.
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1) During the year ended November 30, 2007, an aggregate of $340,680 (2006: $267,000) was paid to private companies owned by the President and Chief Executive Officer, and Executive Vice-President for consulting services. Roger's Drilling Services Inc. ("RDS") $163,260DRW Geological Consultants Ltd. ("DRW") $177,420 Total = $340,680 An amount of $84,960 (2006: $73,000) was paid in consulting fees to the Chief Financial Officer of the Company." You have to wonder why Webb, Sylvester and the CFO are being paid as CONSULTANTS, not as employees?? Why are they distancing themselves from TDC? Is it a liability issue?? Hmm.I was sure that I saw a table of Salaries for these guys in one of the MD&A reports.Sure hope they’re not double-dipping! $170k a year for what Webb is delivering is really far too much as it is! 2) "An amount of $116,603 (2006: $98,631) was paid in legal fees to a legal firm of which a partner is an officer of the Company." Value for your money?You decide.3) The Yellowknife Gold Project has a net smelter royalty payable to David R. Webb, President and CEO of the Company..... Example: At 100,000 oz/yr and $1,000/oz this would be worth $750,000/yr to Webb. Note: these terms indicate that Webb will get a lion’s share whether the mine is profitable or not. 4) Thereafter, the percentage will be 1% to 2.25%, depending on the monthly average gold price (with 2.25% applicable at a monthly average gold price greater thanUS$500 per ounce). "Example: At 100,000 oz/yr and $1,000/oz this would be worth $2.25 MILLION/year to Webb. This is icing on the cake, especially the fact that it is driven by an unrealistically LOW gold price!! Shareholders would be advised to demand a revision to the terms with a MINIMUM gold price trigger of say $1,000/oz. It is suggested that at prices lower than this the YGP is clearly uneconomic.5) "The Company has agreed, commencing in April 2004 and on every anniversary thereafter, to advance to David R. Webb a non-refundable minimum payment ofUS$20,000 which is deductible from the NSR, described above. These advancepayments have been paid to date."Real nice: Webb gets an ongoing payment in addition to his $170k ‘consulting fees’. The latest MD&A indicates that Webb was paid $22,000Cdn this year for the royalty advance. Funny, I understood that the exchange rate last April was the other way around. Looks like more creative accounting. Summary: THE MAN is pulling down close to $200k/year. Nice lifestyle.6) Part 3 deals with the insiders and friends of TDC: Stock Options and Warrants. "On June 27, 2007, the Company granted 1,876,000 stock options, of which 1,341,000 were to directors and officers of the Company. The exercise price is $0.41 and the expiry date is June 27, 2012." ... Certainly Webb or any other prospector deserves a piece of the action for providing the property, however the NSR deal is far too sweet and should be renegotiated. 2.75% of the revenue off the top is RIDICULOUS! And finally, we need to understand why TDC executive are being paid as consultants, not employees. And, are they receiving salaries on top of the consulting $$?? Oh yes, I may have forgot to mention that Webb, Sylvester and Anderson ALL received "performance bonuses" in addition to their consultant charges, amounting to $26k, $24k and $13k. I guess it is one of those cases where everyone pats themselves on the back for a 'job well done'.
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