Fair and reasonable?
We don't even know what his base salary or percentage of profits are!
If it were just the options and shares, then it would be a reasonable, and well aligned package, although the 1 million 18c options are a low hurdle given the company was trading above 18c just a few months ago.
Most of the hard work and risk has been done in this company. It's not fair for a new CEO to step up and extract profits disproportionate to their contribution.
There's a point where incentives either don't work, or become so extreme that they tempt management into unethical ways to meet their hurdles. That might mean sacrificing long term success for short term share price movements, or it might mean flat out dishonesty.
It's fair enough to reward management well for doing a good job, but if he meets the final hurdle, he could end up with over 3.44% of issued capital for 1 year's work, plus whatever his base salary is, PLUS a percentage of net profits!
Nice work if you can get it.
Fair and reasonable?We don't even know what his base salary or...
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