Ann: Notice of General Meeting, page-8

agreed options strike price generally should be set hire to provide a hurdle to get over, however the fact remains that options are a good motivational tool within listed companies
i remember being a junior in a listed company and having access to options that weren't in the money but if the company did well could be worth a significant percentage of annual salary was very motivating and gave loyalty, even meant i was happy taking unders as a salary. Gillards moves back in the day to change the taxation of options (even when not in the money!) was one of the stupider things aussie politicians have ever done