walpolepark,Thanks for sharing the response that you recieved.No...

walpolepark,

Thanks for sharing the response that you recieved.

No doubt that rewards and incentives are critical to attracting and retaining good quality staff, executives or otherwise. This is true in any company and all industries no doubt.

I don't think anybody is questioning the necessity for a rewards / incentive scheme. Its simply that the details of this scheme seem almost staggering and this is hard for most to understand and justify.

So in this first tranche TB gets 2.65 mil free shares. Even if one believed that this was repeated over the four years at a similar level and totalled just over 10 million shares to him during the scheme, where are the other 190 million shares proposed to go to ? There's hardly any employees. That a boat load of shares just left to their discretion with no obvious home. Its 10% of the company that they are asking for so surely its only reasonable for them to be upfront about how they arrived at the 200,000,000 number and where they see that going. Should we really be asked to sign a blank cheque ?

I get the fact that free shares keep them happy and make them feel valued. Their desire to increase the SP is enhanced when they have shares themselves. No different to options in that respect. Ignoring that fact that TB already has a bucket load of both and therefore should already have an incentive to get the SP moving up, what I don't get however is that if this scheme is to give them skin in the game then why does this scheme also pay them slabs of cash ? We already have a bonus scheme to pay them extra cash. Also why is there absolutely no mention of this extra cash until you read the fine print ?

You mention that "Terry will receive $250,000 worth of shares" but thats only part of the picture. Attached to those shares would also be cash awards under this plan. Additionally in this same meeting we are also being asked to approve 3 million options for Tezza. This is of course all in addition to the existing shares, options, salary and bonuses, not that I have an issue with the existing stuff. The point being $250,000 is only a fraction of what we are actually approving here. We can't look at these things in isolation can we ?