Difference between revisions of "Spera Bank February 2020 Executive Committee Meeting"

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== Issue 6: Revising the Rates for Bonds ==
 
== Issue 6: Revising the Rates for Bonds ==
Shortly into the February 2020 Executive Committee, the [[Spera_Leadership#Senior_Executive_Leadership_Team_.28SELT.29|Senior Executive Leadership Team]] requested that the EC take up the task of revising the interest rates applied to bonds.
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Shortly into the February 2020 Executive Committee, the [[Spera_Leadership#Senior_Executive_Leadership_Team_.28SELT.29|Senior Executive Leadership Team]] requested that the EC take up the task of revising the interest rates applied to bonds. The original interest rates were incredibly low, by any standards. They were also less competitive than our savings accounts. For 3-month bonds, the EC voted to increase the interest rate from 5% over the lifetime of the bond to 15% over the lifetime. For 6-month bonds, the EC voted to increase the interest rate from 10% over the lifetime of the bond to 60% over the lifetime. These put our bonds competitively at approximately 1.25% and 2.5% weekly, respectively.
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== Issue 7: Revising the Rates for Savings Accounts ==
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At the request of Board Member Sidd, the Executive Committee agreed to take up the issue of considering for increase our [[Spera Bank Savings Accounts|Savings Account]] interest rates. The opinion of that Board Member was that our Savings rates were too low, and that they needed to be increased. For reference, the rates for the savings accounts are 0.5% for Rapid Access, 1.0% for Standard Access, and 2.0% for Employee Accounts. Two statements carried the sentiment of the Executive Committee so strongly and accurately that in lieu of the normal summary, the following will instead suffice.
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* "''I personally am against this fairly strongly. I’d rather our comparatively lower savings rates highlight our much higher bond rates, [as] ultimately bonds are more useful than savings accounts to us.''" - [https://politicsandwar.com/nation/id=179470 General of the Union], [[Spera Leadership/Co-Chief Executive Officer & President of Orbis Lottery|CEO/OL]]
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* "''I think the interest on our saving account, especially the standard saving account is fair as it is right now. We have to be able to make profit so I'm not for increasing it.''" - [https://politicsandwar.com/nation/id=158504 Lucianus], [[Spera Leadership#Deputy Chairperson of the Board|Deputy Chair]]
  
 
[[category:Spera]]
 
[[category:Spera]]

Revision as of 15:44, 9 February 2020

Second Executive Committee Binder

In January, we accomplished a lot that I'm very proud of. With wars raging outside our doors, Spera's Executive Committee stayed hard at work. We remained at the helm working on the myriad of tasks that we took up for our inaugural Executive Committee meeting. For February, I'd like to see us capitalize on our successes as a Bank and as Individuals.

When we ratified the First Executive Committee Binder, we ensured that there would be a new one each and every month to help steer and focus our efforts. To that end, I offer this proposal for us to take the following events up.

Issues

There are, before us, five issues that need to be addressed in preparation for the February 2020 Board Meeting. Additional issues may be raised and included in the binder throughout the session, however these are the five core points that we will endeavor to resolve. The goal is to not have any carry-over issues this term. Separate from these Executive Committee issues, the Steering Committee will be working with each of the Executives that currently do not have employment contracts to find meaningful balance. While this is not strictly a matter of the Executive Committee, there will inevitably be overlap, and the possibility for shift in the EC mid-session.

Issue 1: Share Price Formula

The January 2020 Executive Committee was unable to come to a conclusion on this matter, so it was extended to the February 2020 Executive Committee. The goals of this Focus Group are to come up with a reasonable yet straightforward formula to determine the Bank's value. The January 2020 Steering Committee came up with the baseline that there is both Book Value and Intrinsic Value, and those two must meet somewhere in between to arrive at the bank's market value.

Shortly after the new Committee sat, the decision was made that rather than set an official price as a company on our own valuation, we should instead simply publish a share "value" based on our books. As such, both current and prospective shareholders will be regularly updated on the book value per share, and they will be able to use that information to help make a more informed decision as to what they consider the value of those shares to actually be. As of the conclusion of this issue (4 February 2020), each of the 5 million existing shares has a book value of $726.56.

Issue 2: Resource Consignment

The February 2020 Executive Committee took up the task to work on designing a resource consignment product to add to our existing offerings.

Issue 3: Public Relations

The February 2020 Executive Committee took up the task to begin developing a new media campaign to promote the Bank and its offerings, especially in a post-war environment. Shortly after this was announced, Greene and General brought forward a plan to acquire Orbis Lottery, a lottery company that has set itself up with a loss-less. The Lottery only functions with the funds that it acquires for each drawing, so there is no overhead. Prior to the war, it operated with an average $100 million profit weekly. Negotiations led to the owners of Orbis Lottery agreeing to accept 3-month bonds in Spera in exchange for the ownership of the Lottery. Fairymoon, OL's Chief Operating Officer, transfers over to Spera as the new Director of Lottery Sales, and will be positioned as directly managing and overseeing the lotto. The sale price was $1.25 billion, which included approximately $500 million in "recoverable" assets (that is, external investments that could be readily liquidated). The adjusted price, after liquidation, was $750 million. As the Executive Committee reached an informal consensus, so an official vote was not held.

Issue 4: Developing a process for the 5 million unreleased shares

The February 2020 Executive Committee took up the task to develop a recommendation to be presented at the February 2020 Board Meeting to address the as-yet unresolved questions surrounding the 5 million unreleased shares in Spera. The understanding at the onset has been that in the event that the shares are subsequently released, they will ultimately dilute the existing ownership percentages.

Issue 5: Revising the Dividends process

At the conclusion of the December 2019 Board Meeting, the Board ratified the decision to executive dividends monthly. The act of dispersing the dividends is the responsibility of the Chief Financial Officer, and the EC will decide exactly what that time table looks like. The initial recommendation was to have Dividends formally approved at the first Board meeting following the conclusion of the period (so January's dividends would be approved at February's board meeting) at which time the CFO would disperse the dividends the first day after the conclusion of the Board's meeting.

Issue 6: Revising the Rates for Bonds

Shortly into the February 2020 Executive Committee, the Senior Executive Leadership Team requested that the EC take up the task of revising the interest rates applied to bonds. The original interest rates were incredibly low, by any standards. They were also less competitive than our savings accounts. For 3-month bonds, the EC voted to increase the interest rate from 5% over the lifetime of the bond to 15% over the lifetime. For 6-month bonds, the EC voted to increase the interest rate from 10% over the lifetime of the bond to 60% over the lifetime. These put our bonds competitively at approximately 1.25% and 2.5% weekly, respectively.

Issue 7: Revising the Rates for Savings Accounts

At the request of Board Member Sidd, the Executive Committee agreed to take up the issue of considering for increase our Savings Account interest rates. The opinion of that Board Member was that our Savings rates were too low, and that they needed to be increased. For reference, the rates for the savings accounts are 0.5% for Rapid Access, 1.0% for Standard Access, and 2.0% for Employee Accounts. Two statements carried the sentiment of the Executive Committee so strongly and accurately that in lieu of the normal summary, the following will instead suffice.

  • "I personally am against this fairly strongly. I’d rather our comparatively lower savings rates highlight our much higher bond rates, [as] ultimately bonds are more useful than savings accounts to us." - General of the Union, CEO/OL
  • "I think the interest on our saving account, especially the standard saving account is fair as it is right now. We have to be able to make profit so I'm not for increasing it." - Lucianus, Deputy Chair