Phlipper, It is a tax effective mechanism for issuing shares to employees.... The company issues 20 million shares which are then purchased by the employee at .082... It is a book transaction which gives the shares a cost base for taxation purposes... Otherwise the employee pays tax on shares when they are issued or when they are eligible to be issued... This is part of the debate. Going on in Federal Politics... This tax liability is hindering small start up tech companies from recruiting high quality staff...
Labor has agreed with Liberals to change the rules...
Without seeing the agreement NEU has entered into , it is likely to be a non-recourse loan if the shares are less than .082 cents at end of agreement....
PYC entered into a similar but far smellier arrangement a few years ago.... It eventually went nowhere...
NEU must place a lot of value in this employee to strike this deal.. And understandably , because there is a real shortage of capable executives in Oz Bio land...
NEU Price at posting:
8.6¢ Sentiment: Buy Disclosure: Held
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