Over the past few years, investors have poured millions of British pounds into super yacht firm YCO, believing that the company was a safe place for their money in the tempestuous economic era. It’s no surprise they felt that way: YCO boasts impressive clients such as billionaires like Roman Abramovich, the Russian businessman who owns the Chelsea Football Club, and British businessman Sir Philip Green.
But in just four years, YCO shares have dropped by 94 percent, staggering down from 49p to just 3p. And although the company has been faced with a tremendous plunge in value, the boardroom pay has risen.
So, in next week’s annual general meeting, YCO executives will have to explain why they have received an augmentation in pay when the company is seeing such lows. In addition, shareholders are demanding an explanation and full details of a loan that was given to former director Neil Miller. The loan was for a total of £415,000—£6,000 of which was used for a family skiing holiday and £20,000 that was used to fund his daughter’s wedding.
“What has happened at this company is an absolute disgrace,” one shareholder said. “The value of the shares has collapsed, the company is barely making any money and yet the executives are still paying themselves huge salaries.”
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Source: The Telegraph; Pictured: Abramovich’s yacht ‘Eclipse,’ PA via AOL
