scorpio esq/
A recruit who fears the share price will go to $0.43 will see little value in any number of options priced at $3.00. People who will join Wave are those that see the potential in its business, enjoy the challenge and are natural risk takers.
The irony on the option plan is that if Wave succeeds, employees will make out twice as well as not only their options kick in but their salaries and bonuses rocket because they are part of a successful company. Of course, if the company fails, no number of out of the money options will make up for their opportunity cost of spending time at a losing cause. Also, the time line for Wave is drawing to a close and if it doesn't perform in the next year, it is unlikely to ever do so. Thus the worst case scenario for a new hire is they spend one year on a losing proposition before moving on. The natural conclusion of this is that while some options are neccessary it need not be an excessive number.
