I never quite understand the negativity of options for directors in junior resource companies. Capital in junior resource companies is not an unlimited resource and is best used elsewhere rather than remunerating employees. Therefore options are a way to remunerate those employees that have the special technical skills required to advance the company. If our current directors are as good as I think they are then they are worth the financial package they have proposed. AVB is competing with others for their employment and if they don't get it from AVB then they will get it from someone else. If you want the best you have to pay for it.
As far as the strike price is concerned remembering that options have been cancelled in the past, the goal from a shareholders perspective must surely be a price at which their is sufficient motivation for management to achieve what they have planned but also a price that is imminently attainable. Without this imminently attainable price it really isn't remuneration and the directors will look elsewhere.
The way I look at it is if in three years the directors are in a position to exercise their options then we as shareholders will have made a lot of money and everyone should be happy.
AVB Price at posting:
8.0¢ Sentiment: Buy Disclosure: Held
