"Can anyone also explain what the implications are of staff...

"Can anyone also explain what the implications are of staff using millions of dollars of shareholder money to buy these options ?"

If I may?

The staff are NOT using millions of dollars of SH money. Here is how it works:

1) Employees exercise their options and pay the Co. with real cash. Thats cash positive.
2) Shares are issued and a loan is booked. Its a journal entry - there is no cash effect whatsoever.
3) Loans are repaid in the fullness of time (hopefully). Cash positive.

I hope that helps.

A more important question (for me, anyway) is whether or not the loans are "no recourse" or "limited recourse". I looked through the latest Annual report and it was silent on this so presumably the loans are not "no recourse", in which case the CFO certainly has BOS.
If they are "no recourse" or "limited recourse" however then the Co. should spell that out and he has little or no risk.