Ann: Tesorito drilling commenced, own rig shipped, IP on its way, page-21

Wouldn't it be better to make management expedite the SP to the strike price of their options through hard work, rather than just giving them the shares for free right now?

Scenario 1:
You're the MD and hold zero LCL shares and get paid $200k per year salary no matter how you perform.

Scenario 2:
You're the MD and hold 25,000,000 LCL shares and get paid $200k salary no matter what. But for every 1c that the price goes up, your holding in LCL increases $250k (10c up = $2.5M).

Which situation would you rather be in/have the LCL MD be in to motivate him?

Scenario 2 of course, which is what I was trying to say.


Of course there's Scenario 3, where the MD gets paid $200k per year and has super high targets/incentives (say $1.00 share price) which he looks at and goes; too hard, I'll take my $200k and relax and not stress myself out as there's nothing else on the line for me - so pretty much turns into Scenario 1.

Anyway, no matter which scenario is there, you'll never please everyone, but I'd rather my scenario where they own shares (whichever way they got them) than a scenario with no shares held.

Cheers,

GB.