@Slowburner, the board members including CEO etc., do not work in other jobs (usually) like the rest of us. They are at the top of their companies. They must be remunerated somehow. It is either by paying them all over $1,000,000 each per year every year, which most start ups cannot afford, or they earn the right to be rewarded with shares instead and take a lower wage.
Yes, there are always a couple of managerial positions that get both, quite large salaries as well as performance shares. That is just business. ALL companies do it. If you don’t like it, then don’t invest.
If they reach the milestones listed in those performance shares, that means I get a sh.t tonne of money too! Yay for me! And you of course.
If they reach 20 cents then I have a choice while it is hovering around this mark to either hold on to see if I can make more $$$$, or I just take what I do have already and scoot along with my bags of cash.
I think I would be happy either way, and will thank them as they get their performance shares.
The trick is - Make sure you know when to take profit before they do, because remember, that is their incentive. To sell and profit. All of them do so at some point. It is very rare for any board member to always hold onto all their shares and never take profit. They are human and have family to take care of too.
Enjoy - GLTAH.
RDN Price at posting:
2.5¢ Sentiment: Buy Disclosure: Held
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