3 ms·
I am curious about that as well since the article mentions > The most desperate of these was the pledge to guarantee a dividend payment to shareholders in Aram
by munk-a 5y ago
I am curious about that as well since the article mentions
> The most desperate of these was the pledge to guarantee a dividend payment to shareholders in Aramco of US$18.75 billion every single quarter of every single year – a total of US$75 billion every single year.
I've never heard of a contractually binding agreement to drive yourself into bankruptcy via an overly generous dividend. From this FT article[1] it does sound like it's pretty voluntary though
> Mr Nasser told reporters that “our intention is to pay $75bn, subject to board approval and depending on market conditions”. Minority shareholders, who own 1.5 per cent of the company, will be “protected” for the next five years and given priority payments, he said.
1. https://www.ft.com/content/3c2c576c-51c6-4ced-b1c2-586c4b2f4914 https://www.ft.com/content/3c2c576c-51c6-4ced-b1c2-586c4b2f4...