"So doesn't everyone involved take a HUGE L here?"
Only if they intend to sell in the short term.
The company is going to be worth $x million in a few years time, the execs now own a bigger chunk of it. Unless this somhow permanently depresses the share price, but that seems pretty unlikely - in a few years time it will all be about sales and profit numbers and todays vote will be irrelevant (other than a slight increase in SOI).
Ann: Results of Meeting, page-4
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