What happens when an employee gets a free share is that some of...

What happens when an employee gets a free share is that some of your ownership of the company is transferred to them. As time goes on, the value of your shareholding is getting gradually eroded and so the business has to keep growing for your investment to simply maintain its value.

There are plenty of ways to motivate employees that do not hurt existing shareholders but whilst the company is run in such a way that shareholders are constantly diluted then it will continue to trade on an earnings multiple that places it in the bottom decile of listed companies. This latest performance rights issue for just part of the management team potentially represents 2.8% of the existing share capital. That is pretty aggressive dilution if it happens each year. And because it has the effect of suppressing the share price, a larger number of shares need to be issued maximising the dilution for other shareholders.

As for the price of the debt well what you've done there is compared a bad outcome with a terrible one and come to the conclusion that the bad outcome is actually good because you have failed to compare it to all the other possibilities.