Has anyone seen that milestone based bonus plan? If you're a shareholder of Sulliden Gold, you received it last week at page 3 and 4 of the Management Information Circular that was included with the documenst mailed to shareholders in view of the upcoming Annual Meeting on October 10, 2012.

Is it only me or does this milestone based bonus plan go beyond what can be expected as a fair bonus plan for executives of an exploration company?

By fair, I mean being generous enough to motivate management, but at the same time not being too excessive, and thereby wasting shareholder's money, especially at a time when raising more money can only be a very difficult challenge.

Excerpts of the bonus program:

Completion of Electrical Connection Agreement: $2,000,000

Start of Project Construction: $3,000,000

Submission of the EIA: $2,000,000

Approval of the EIA: $2,000,000

Completion of all required Land Purchases: $3,000,000

And many others ....... See for yourself on SEDAR if you're not a shareholder. Or if somebody aks, I will copy and paste it in its entirety in a separate post.

I'm not saying that these milestones are not necessary steps in view of putting the mine into production in 2013 or 2014 as Sulliden is currently planning.

And each of these steps will help (hopefully!) to increase the share price and managememnt have a generous option plan already.

A management option plan is aligned with shareholder interest, but these milestone bonuses are not necessarily aligned. If all these bonuses are paid, and the mine doesn`t go in production, shareholders loose their investment, management keep the money....

Sulliden shareholders are informed for the first time of this bonus program 3 weeks ahead of the annual meeting, and there is no proposal submitted to the shareholders to vote for or against this bonus plan at the assembly, or to amend it.

Is this a common practice? I'm not sure I can agree with it.