Hi WandarraI dont think you have taken into account the fact...

Hi Wandarra

I dont think you have taken into account the fact that these options are unlisted and untradeable and therefore imho are worthless atm.
In order for them to be of any worth at all the sp must move beyond the strike price of 80c
For the new COO to profit in any way from these options he must a) see the sp over 80c and b) fork out $1.2m in order to excercise them, this money goes obviously directly into the Co coffers.

Share/option based renumeration is very standard practise and as a rule in listed companies the board as a whole or as a sub-committee (renumeration committee) set executive renumeration.

I am familiar with the black scholes method but not sure that it is appropriate when dealing with out of the money unlisted options.

RE; Schwing, I think ozgem covered that accurately in his post

just my opinion

regards

Reservoir Dog