Down 73% in a year: Appen shares sink again after CEO vests performance rights

Executives get free shares despite shareholder wealth destruction.

| More on:
Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It certainly has not been a great time to own Appen Ltd (ASX: APX) shares.

Over the last 12 months, the struggling artificial intelligence (AI) data services company's shares have lost approximately 73% of their value.

To put that into context, if you had made a $20,000 investment a year ago, you'd have just $5,400 left.

Whereas if you had invested those same funds into the popular Betashares Nasdaq 100 ETF (ASX: NDQ), you would have seen your investment grow 45% to $29,000.

That's a massive $23,600 difference in value!

In light of this, the company's shareholders may not be best pleased to learn that its newly appointed CEO, Ryan Kolln, who was COO for much of the last 12 months, has just converted a large number of performance rights into Appen with zero cost.

Appen CEO picks up free shares

According change of director's interest notice, Kolln vested 166,850 performance rights into the same number of Appen shares on 18 March without spending a cent.

These shares have a market value of $111,789.50 at the current share price.

Though, had Appen's performance not been so dreadful over the last 12 months, those shares would have been worth considerably more.

A year ago, its shares were fetching $2.31, which would have given them a market value of $384,799.80.

Nevertheless, it begs the question, why would a company reward its executives with performance rights when they have destroyed so much shareholder wealth in recent years?

As a reminder, the Appen share price was trading as high as $35+ in 2020. Since then it has shed 98% of its value and trades at just 67 cents today.

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Appen and BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

A young woman lifts her red glasses with one hand as she takes a closer look at news about interest rates rising and one expert's surprising recommendation as to which ASX shares to buy
Technology Shares

WiseTech share price higher on big news

This tech stock has found its new leader.

Read more »

Man holding a calculator with Australian dollar notes, symbolising dividends.
Technology Shares

$10,000 invested in DroneShield shares 5 years ago is now worth…

You might be laughing all the way to the bank if you had done this.

Read more »

Happy woman working on a laptop.
Technology Shares

Up 60% since April, why this $40 billion ASX 200 tech stock remains a 'compelling buy' today

A leading expert believes this $40 billion ASX 200 tech stock has a lengthy growth runway ahead of it yet.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Technology Shares

DroneShield shares sink 7% despite big news

Let's see what's going on with this market darling on Thursday.

Read more »

A man activates an arrow shooting up into a cloud sign on his iPad.
Technology Shares

Up 25% since April, is it too late to buy Xero shares today?

A leading expert gives his verdict on the growth outlook for Xero shares.

Read more »

Man looking at digital holograms of graphs, charts, and data.
Technology Shares

2 amazing ASX tech shares I wish I'd bought last year

These tech companies are among the world’s best companies.

Read more »

A man in a business suit and tie places three wooden blocks with the numbers 1, 2, and 3 on them on top of each other.
Broker Notes

3 reasons to buy this booming ASX All Ords tech stock today

A leading broker forecasts more gains to come from this surging ASX All Ords tech stock.

Read more »

Man ponders a receipt as he looks at his laptop.
Technology Shares

Brokers rerate 3 leading ASX 200 tech stocks

Experts reveal their ratings on the ASX 200 tech sector's three biggest companies.

Read more »