Ann: Update - Notification of buy-back - MOZ, page-3

I am wondering if we are on the right tram with this. It could be that the employee was issued the shares at the price of $1.78, financed by a non-recourse loan from the company. The employee only discharges the loan as and when the share price is >$1.78. In other words, the initial share issue is a book entry only. If the employee leaves the company, the entries are reversed, with no actual cash transaction. However, if this is step one in providing a benefit to continuing senior management, with step two being an issue of the same number of shares at a lower price, it stinks. They took the shares at $1.78 believing that there was upside. They should accept that the share price is in the cellar like everyone else does and start fixing it.
I don't know if this right, but I couldn't see a manager shelling out $890K in the first place.