You seem hell bent on defending a bloke who no matter which way you cut it continues to get "incentivised" and has taken millions of dollars off the table.
The incentive shares which the loan stands against have been issued, see the Appendix 2A released on 20/12/21. They are ordinary fully paid ordinary shares that have full voting rights and are fully tradable without him forking out a dollar. The loan had a 3 year term with no interest btw - IMO I don't really see that as commercial but anyway I digress.
The stock is on his HIN or at the very least in his possession . If he sells the stock the money goes to him, it doesn't go to ZEO. Its the same as any loan, the money isn't due when he sells its due at the maturity date of the loan in 3 years. You may say well he's a director so of course he will pay it back well Goody was a director once upon a time and how did that work out?
If he does leave then why would he repay the loan? It's non - recourse so IMO why wouldn't he just walk and let the company sue him for something that was non-recourse to start with?
IMO these are not commercial arrangements - either the company is naive or they have been intentionally structured in a way that completely favours the borrower. At the very least the loans surely should have been secured against the stock or the stock should've been in escrow until the maturity of the loan.
The worst part of this is that there's no performance hurdles to be met, the "incentive" is tied to nothing. Its just shares against a "loan" that's free money.
Again (happy to be proven wrong) I don't recall seeing these sort of loans in other companies of a similar size and certainly not when they apply to all directors. There is nothing in this loan structure IMO that works for shareholders but it certainly does work for the recipient. Another case of the Have and the have nots.
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