Asciano investors may go on the rampage with the announcement of no dividends being made with minimal fanfare. Especially when the announcement comes hot on the heels of a $900,000 bonus being paid to the controversial Chief Executive Officer Mark Rowsthorn as a retention payment.
Malcolm Broomhead, the new Chairman of Asciano will have to explain to the shareholders why they were not getting even the 2¢ a share dividend which had been expected. He will also have to explain why Asciano is going to report a loss this half-year thanks to the 'write downs' of goodwill.
Investors may not be interested in learning about the projected expansion and growth plans for the company when it becomes obvious that the company is not making enough money to hand out regular dividends. While it may make good economic sense to withhold the dividends the company will not be making its shareholders happy.