Personally I thought the performance package was overly generous.
Having said that, there are many advantages in having a CEO financially attached to the company.
Firstly, he probably wouldn't hang around for a salary package of $200k. I know he works 7 days a week & long hours, it would be very hard to find a replacement who knows this business as well as Adam. He now has more than enough incentive to see this through. When I first met Adam almost 2 years ago, he was introduced as the next CEO. So this promotion has been a long time in coming.
Secondly, he has the potential to become a top 5 shareholder. If you're worried about dilution & the performance of the company being a minor shareholder, you can imagine what that must now mean to Adam.
His package includes a low salary more than made up for in incentive target rewards. Although supposedly these targets were set independently, they obviously reflect the goals the company is hoping to achieve. To have incentive targets making up a large portion of your package also shows he has confidence in the company going forward.
He now has a (1m share) incentive to get Freshero to sign that JV & order for the 1st facility. To me, that is a done deal. They are just waiting to see the full automation work for the lettuces, or the conclusion of the strawberry testing which so far has exceeded expectations.
The 2m share bonus on the acquisition (or 50% JV/partnership) of a $10m + cannabis business leading to 1st revenues, is interesting. Supra would meet this requirement or one of the JVs they have mentioned. For example from the June Qtly "The Company is focused on moving away from capital intensive projects and striving for sustained revenue from establishing cultivation partnerships" ... "has commenced discussions for cultivation partnerships in Canada, Malta and Malaysia."
I thought the price targets for the options was a bit low (32.25c and 43c to exercise). Though if you buy shares today, to meet that 1st target you'd double your money. Adam would obviously need to pay the company $322k & $430k to exercise those options and only profit when the sp goes above those prices. Any JV/partnership he now signs, he'll now be even more careful to insure the benefit to the share price more than offsets any dilution - otherwise it comes out of his pocket.
