Ex-Noble Group’s CEO Alireza Sues Founder Elman for $58 Million
“The former chief executive officer of Noble Group Ltd. has filed a lawsuit against founder Richard Elman claiming that he’s owed stock in the embattled commodity trader”.
“Elman gave Alireza six months’ notice of termination, citing irreconcilable differences between the two on how the company should be run in future, the writ says”.
“According to the writ, Alireza had a deal to receive about 63.9 million fully-paid shares in Noble Group for starting work at the company, and an additional 52.3 million shares when his employment was terminated. He claims those shares haven’t been transferred”.
For the 1st time we learn that the departure of the CEO of Asia’s Largest Commodity Trader wasn’t an unexpected resignation but a termination.
We doubt Alireza is “in-the-money”, his performance was rather mediocre but in the absence of a decent board and with Noble (來寶集團) pushing back against the exchange guidelines for disclosing information on its executives’ remuneration in Singapore anything is possible.
Also adding to the oddness, the defendant isn’t Noble Group LTD but a shelf-company –Fleet Overseas (New Zealand) Ltd, an intermediary that banks dealing with the Noble camp have just been revealed the existence of.
At the present it remains impossible to determine the exact nature of Fleet Overseas (New Zealand) Ltd and its relationship with Noble Group (來寶集團) nor we can’t know the exact stock compensation scheme to remunerate its executives.
Noble (來寶集團) has some bonus/compensation/stock options liabilities not limited to its MDs.
Traders have also to protect their biscuit.
There are many rumors circulating in the market about a Noble Group (來寶集團) trader got a special arrangement with Noble after he threatened to go with another company in Houston.
We muse that Fleet Overseas might had effectively acted as a SPV (special purpose vehicle) to offshore potential future liabilities “off-the-balance sheet”.
Giving the future viability Noble Group (來寶集團), these liabilities will likely expire worthless.
More importantly, 4 Banks are long on this thing left with a $1.5B exposure, a Winner with no financial substance or unencumbered assets, zero management oversight, a porous risk management and no physical trading traceability.