If this is true, the only difference between this situation and other companies is that SVFC isn't making money yet. How many Executives of public companies get stock options, use of a corporate jet, company car's, etc. Most companies would add fringe benefits to their taxable wages.
Bottom line, when this is done, it is being taken from the share holders/public money, even if the net income is positive.
This is just my opinion though.
By the way, I'm not saying that I like it.