Sgolds, the great bulk of the share grants are at market price, the 1c shares are a small part.
Big or small is irrelevant. The point is that the one-cent options represent free money that AMD doesn't have to expense. Plus the entire concept of options is to reward good performance and tie compensation to it. Why should an exec get free money from the shareholders even when the stock drops? At least options granted at market price become worthless if the stock price drops during the tenure of the exec.
No need to bring up Intel. I am fully aware of the expenses Intel has in its stock option program.
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