From memory options have some taxation issues for USA guys where if you don't pay tax up front on them you have to pay it later and no management is ever confident enough to pay up front unless they are at a impossibly low strike etc etc . The old I'm not putting any money up story.
Often when options are issued the broker will lend the person shares to sell and then do conversion and lock in a number as a service and if a lot of them in thin markets it although supposedly at arms length creates a odd market.
I agree with the option theory and I also believe all performance shares or resulting shares from options should have escrow / gradual vesting ( rolling golden handcuffs) so there is no pumping just to get something over the hurdle point or time period. What Wayne and existing management have recieved IMO has been ludicrous and so much so that it alone pushed profitability out another year .
Honestly someone should do the numbers and work out the real price a option should have been issued at when these guys came on board that reflected eeh expected 50% 70% 100% growth and option should have a strike of that. So at $1 share price we were told 40% growth so min ex price should have been 1.60 !!! ha ha As if when there are discounted freebies being handed out like confetti.
Simple message - if everyone votes and big holders haven't done a suck up job deal they are headed to a 2nd strike and as far as I am concerned a remuneration review. Their original contracts should have included a clause ( doubt if they do) in performance section that a 2nd strike prevents all payouts and then they can either walk or come back on with new negotiated package?? . Yeah I wish.
If they withdraw some resolutions and communicate openly to every shareholder they might prevent the situation instead of trying to IMO arrogantly bulldose through.
Does ASIC still record who asked for buyback formally or did YOW capitulate before formal request and included it in AGM? Juts interested in who called it if it was a broker trying to leverage their client base or a pissed of insto wanting to game the buyback for pips.
(20min delay)
