Ann: Change of Director's Interest Notice - David Brant, page-6

True . He is not obliged to exercise them and obvioulsy would not unless they were profitable. It is the leverage they offer at no initial cost that is not afforded to shareholders. As an example if there is a takeover proposale this bloke has leverage and normal shareholder does not. There is no takeover protection for normal shareholders . If management wanted a takeover protection in place they should issue options to all holders so any proposed takeover has a hurdle to jump in that holders would exercise their options and have some leverage over the situation and ensurea strong bid. If no bid and above exercise price then if it some nice capital going into teh company guaranteed at future expirty date or before.

Other issue I have with director options is they often enter into sale agreement with broker so they sell shres into a high and then convert options as a deal with broker. They can really that a high off the shareprice if lots are issued as directors leave it like a trailing order and as it is placed now at arms length is totally outside normal trading quarantined periods.

I can see positives that a director should be incentivised but not so much infront of shareholders also getting a return.

Bottom line is 50 in cash and $XX in oppies correct pay for a director of a 80 mill cap company and are performance hurdles at a suitably high level.