We reward the BOD for their efforts with options. It gives them the direct mechanism to do a great job that is best for the company. They have to pay to exercise the options. This is a good deal for both the director and the company.
In most cases, the only way the director can pay to exercise the option is to sell the existing shareholding. If we take this method away from the director, then we may as well pay in cash. And be worse off.
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