You say .. "They have nothing to lose because they got the...

You say .. "They have nothing to lose because they got the shares for free."

This is just BS .. So what if they got their shares for free .. Those many millions of shares were trading not that long ago for many, many multiples of what they are now .. If the directors really believed that the company would ultimately fail, they could have made a heck of a lot more by selling out back then, compared to hanging around and working for a few more years to earn those salaries you claim are their real focus.

So yes, they did stand to lose a very big deal of money if this company were to go broke .. Not from their initial involvement / investment, but from what they could have got if they had decided to cash in when the SP was much healthier.

Rightly or wrongly, they believed that they were running a company that would be successful and reward them with big profits and a big SP .. they weren't just in it for the "excessive salaries and fees" .. Not everyone in this world is as cynical as you.