here is more, why would the company choose these particular...

here is more, why would the company choose these particular options, and not other forms of payment ? DIY as usual

again, my favourites are points 4 and 7

The company might have chosen to compensate the advisor with options instead of other forms of compensation for several strategic reasons:

1. Alignment of Interests: Options align the advisor’s financial interests with the long-term success of the company. If the company performs well and the stock price increases, the advisor benefits directly, motivating them to work towards the company’s growth and success.

2. Cash Flow Management: Granting options allows the company to reward the advisor without an immediate cash outlay. This can be especially beneficial for companies that want to conserve cash for other operational needs or investments.

3. Incentive for Future Performance: Options can serve as a powerful incentive for the advisor to continue contributing to the company’s success over time. Since the options have a vesting period and an expiration date, the advisor is encouraged to stay engaged and perform well to realize the potential gains.

4. Potential for High Rewards: Options can offer significant upside potential. If the company’s stock price increases substantially, the advisor stands to gain a considerable amount, which can be a more attractive incentive than a fixed cash bonus.

5. Retention: By granting options that vest over time and have an expiration date in the future, the company can ensure the advisor remains committed to the company for a longer period, reducing the risk of turnover.

6. Tax Advantages: Depending on the jurisdiction and the specific type of options granted, there can be tax advantages for both the company and the advisor. For example, stock options might be taxed at a lower capital gains rate rather than as ordinary income.

7. Market Signal: Offering options with a strike price above the current share price can signal confidence in the company’s future prospects to the market and investors, suggesting that the company expects its stock to appreciate significantly.

8. Cost-Effective: Options can be a cost-effective way to provide competitive compensation without immediately affecting the company’s financial statements as much as a large cash payment would.

By choosing options, the company leverages a compensation strategy that not only rewards the advisor for their past contributions but also motivates them to continue driving the company’s future success.