Yes but I think you just misread it.
Its pretty simple. The company allows him to take the gamble that the price will be much higher each year. So he can have the shares at a premium price and pay for them later. Like options. But options that have to be paid for.
The incentive is a million dollars or much more worth of shares on loan, if he does a good job, they are worth a lot more later. The incentive is for now, he is nothing out of pocket. But has to stick around and do a good job, to make it work and make the gamble pay off.
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