If Zetkama, the producer of industrial equipment, generates PLN 8m (EUR 2.4m) of net income this year (without consolidating results of Srubena which was acquired early this year), the management will get bonus provided in the motivation program. The official forecast of Zetkama is much lower, however.
„The forecast of PLN 6.1m will be realized”, Leszek Jurasz, Zetkama CEO said.
Additional income is to be generated at the facility in Wegierska Gorka, a bankrupt plant. Zetkama leased it from the bankruptcy officer and wants to buy it.
“We already sell products from Wegierska Gorka under our brand”, the CEO said.
The incentive program provides for 300,000 shares at PLN 0.2 a share. In 2007, the program provided for 60,000 shares. The management won’t get them. The condition was income of PLN 4.1m. However, the reserves connected with shifting the plant cut the net income. The auditor decided that the costs had to be deducted at once. In result, Zetkama had PLN 2.15m of net income instead of PLN 4.7m.
Even if the company has PLN 8m of net income this year, the management may fail to get the bonus again.
“The program is built so that the financial requirements provide for Zetkama alone. The plant in Wegierska Gorka was leased after the program had been founded. Whether these income is taken into account will depend on the interpretation of the owners. We will talk about it”, Leszek Jurasz explained.
(PLN 1 = EUR 0.295)