Some may recall I have been loose with my interpretations in the past...but, I'll have a go at offerring a theory.
1. Takeover defence. If Management own 10% of the company, the takover company cannot get over 90% of shares (unless management sell).
2. The more likely scenario...takeover defence should probably read 'Takeover Reward'. ie, if the company is the subject of takeover, then managements 10% gets fully vested as a 'thankyou' for getting taken over.
Win/Win for management. I don't think anybody eluded to the 'defence' being for shareholders protection.
SSN Price at posting:
9.4¢ Sentiment: Hold Disclosure: Held
