RE: Governance19 Aug 2021 22:07
a lot of folks do not understand the fact that most shares are awarded as options. The options have a fixed strike price, which means if the strike price was today's closing SP, then 1.17 is the basis. . The only advantage to stock options is that the "awardee" does not have to fork out any cash to purchase the options, has no real "skin in the game". If the awardee sells 1000 options a year from now (normally, stock options "vest" at a rate of 25% a year), at a price of 2.17, then he has made a 1000 quid, before tax. If the SP does not appreciate, then the options are worthless. Stock Options actually play into the PW message quite well: "it is not about days, or weeks; it is about quarters and YEARS". I have no problem with an employee benefiting from the company's SP, since I benefit just as much.