Good point, but this arrangement is quite complicated.
They can take up the options at any time over the next 5 years. Obviously they would be dumb to take up the options unless the price rises above 4p exercise price.
However. if the SP goes above the exercise price and the options are taken up they cannot then dumped for a quick profit due to the company holding a vested interest for one year after the options are exercised. So the onus is on the two directors to work to hold the SP up for at least a year after taking up the options.
I hope I've remembered option rules correctly from the time a zillion years ago when I worked for a living and received share options. If not, could someone put me straight on the way it works.
Surely it's a good idea to incentivise our new Directors? I wouldn't worry about the 5-years... This just gives flexibility to the deal, and an opportunity for the SP to increase as we near production. I'd rather be moaning about directors taking up their options when the SP is substantially higher than it is now, than them simply being given them for nothing with a high salary...
Beowulf (AIM: BEM; Aktietorget: BEO), the mineral exploration and development company principally focused on the Kallak iron ore project in northern Sweden, announces that following a recommendation from the Remuneration Committee the Board approved on 9 October 2014 the granting of 500,000 options each over ordinary shares of 1 pence in the share capital of the Company ("Ordinary Shares") to Mr. Kurt Budge and Mr. Bevan Metcalf following their appointment as Non-Executive Directors of the Company. The options are valid for 5 years at an exercise price of 4 pence per Ordinary Share with a vesting period of 1 year.
Following the Grant, there are now options outstanding over, in aggregate, 4,690,000 Ordinary Shares representing approximately 1.36 per cent. of the Company's existing issued share capital.
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