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" If SYN waits a few months and the sp rockets on phase 3 readout then... the options are almost useless to the owner"
How do you work that out? Are you saying they would somehow be worse off exercising those options at, for example £5 or £10 a share than they would be today?
I'm aware they would incur a significantly larger tax bill. But that's not the only factor for them to consider.
What's been overlooked here is the TIMING of the award. If SYN waits a few months and the sp rockets on phase 3 readout then as we very strongly suspect, the options are almost useless to the owner because the day 1 market fair value as measured for immediate income tax charge purposes on the incumbents would be excessive . It makes real sense given the facts on value ratcheting of the SP upward to give some of these guys a very small piece of our forthcominhg massive corporate valuation expected in early 2022.
Aside from the details given in the RNS, are the terms of the grant of options made public?
I'm wondering if they are required to hold onto them for a certain amount of time, or whether they've effectively just made the decision to keep £200k worth of shares each rather than immediately cash them in.
If you want to attract the best people, you need to offer them a share in the company. Sensible action by the board
I have no issue with options so long as they are aligned to performance and business outcomes; these seem contingent on the Activ progression, which I’m fine with.
Where I take issue is companies throwing options round like confetti without any real rationale. It’s situations like that which make a mockery of shareholders. Plenty of those sorts on AIM…
It'd look good on their CVs, if SNG was successful, but I agree that the additional lure was needed.
These options are a tremendous incentive for staff to push hard and see this through to completion. I am all in favour of them for any company.
They may seen as a salary bonus, but the important point to remember is that they may not have been willing to join Synairgen without the offer of these options. Most of the new recruits have come from large corporates with safe jobs - joining a small biotech has to be seen as a riskier career choice that needs to balanced against a greater potential reward.
And presumably are bought out in a TO
tbh, the success of the company now hangs on the trial outcomes and is in effect in the hands of others , so the options are just an unearned salary bonus should we get good results imv.
I agree ,
It's very encouraging and shows they are looking way into the future.
They know they have something very special here. Imo
It’s not a huge number of shares - it takes the number of options in issue from about 8,105,000 to 8,460,000.
I wonder if the award was conditional on reaching Activ-2 phase 3
Our wage bill is tiny so in case of success they will deserve all the options they have and more
They could have a higher exercise price let's be honest. Bit of a p take. Great news yesterday and a chance of 500p in the near future if the ducks continue to line up but I have to admit I am one of your options complainers.
I think they mean performance of the individuals, not the company. They’d each have individual objective from the board which they’d need to meet before being able to excercise them.
Issued under the LTIP - all very encouraging and just reinforces the long term focus of SNG.
"The Options are issued under the Company's Long Term Incentive Plans and are exercisable up to 19 October 2031, subject to the achievement of appropriate performance criteria."
It doesn't seem like it can be exercisable immediately, but are subject to meeting some performance requirements. I am guessing for these new recruits a lot will depend on outcomes in the next 6-12 months. It would have been good to know what these performance requirements actually are.
There will likely be some complainers but in have no problem with the Options being issued as per RNS.
Synairgen have been recruiting top professionals who have great experience with much bigger firms. We’re never going to be able to compete with potential salary so this is obviously the way to attract them.