Hi all,
The reason why he is exercising early is simple.
NEA has a very 'favourable' Employee Loan Scheme; will lend the whole amount to exercise. Terms of the Limited Recourse Loan are (pg 41 Annual Report):
Intererst rate: 1.50% (Reserve Bank Cash rate)!!
Term of Loan: 3 years (that's why 3 years early)
Recourse : Only have to repay if share price is above loan price (sweet...no risk)
The other benefit is that he starts the 12 month capital gain tax concession clock early.
Personally I'd sell my shares if he didn't take up this sweetest of sweet option schemes. it would mean he was a complete id*ot!
Oh...and did I mention he doesn't put in or risk one cent doing this?
Hmmm....
Cheers
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Hi all, The reason why he is exercising early is simple. NEA has...
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