RE: So27 Jan 2021 10:52
Jason has 3m option in the last grant at 7p. If he exercises at 59p his proceeds will be £1,770k, He will have to pay £210k for the option (which the company gets) and tax say at Circ. 35 % £546k giving him a profit of £1,014k…Just over £1m
So for the BOD to get a meaningful retirement amount of money they really need to get the SP up significantly to reward them for their years of service. Watch this space
As a comparison a private investor with 3m share purchased at 2p would have a strike price of 36p (approx. 60% cheaper than Jason for the same gain) to achieve a similar gain £1,020k assuming share purchased via sipp or isa. If taxable at 35% the strike price would be 54p ( 10% cheaper than Jason) for £1,014k