firm commitments, page-64

guspoyet

yes i would like the directors to be rewarded for the efforts in building the company, and most importantly for SH growth. what sticks in my craw though is the 10 cent option price. i understand both sides of the coin, SH want the option price to be high to make the directors work hard and achieve max SH growth so we can make max moolah. on the flip side, the directors wants them low so as to be easily attainable, so they can make max moolah. the trick is to find the fine line between the two, where the SH is happy that there is enough incentive for growth, and that the directors are happy that the price isn't so unattainable that they have no hope. in this case i think they have erred big time on the side of the directors. a more realistic price IMHO is in the 12 to 15 cent range. in my view its easily not out of the ball park as a share price in the next year or two, so its very attainable. also it represents serious SH growth, anywhere from 50% to 87.5% against the EO price. the current option price represents a SP that i think will be a foregone conclusion inside 6 to 12 months, and growth of only 25% against the EO. considering the risks inherent in this company when i bought in, and the length of time i have held for, 25% growth in the next few years just wont cut it for me as a SP growth figure to be happy about.