Cytogenix (fka CYGX)

[marcusaurelius]

Your question is a very complicated one, and I think it depends a great deal on details and context. Sometimes, stock options are awarded in lieu of salary as a company may have acute cash flow problems. Quite a few CEOs would not accept that kind of arrangement, but at one point, MS did. There are a large number of possibilities as to why options may be granted, and I doubt all Malcolm's options were granted at once. I think one has to go back into the history of what happened before a judgement can be made. You may decide that some awards were reasonable, and some were not. Of the ones that were not, some may have been made in good faith, others not, it is for you to decide. By the way, I imagine the BOD must have agreed with whatever disbursements were made. There must have been at least some reason for them to agree to it.
However, one thing I do not agree with is your dilution analysis. MS has far too few shares, relatively speaking, for that. Best, MA