Snack are you saying it was 500k before the split with 120M odd shares outstanding, and now it is 500k after the 1;3 split with 40M odd shares outstanding?
What Sks needs to do on the next conference call is to explain the companies position on this matter in a straight forward manner. No fudge words, like we believe, we think, we anticipate etc.. He needs to clearly state that why it does not make sense to simply ask for a small amount, that would last a year or 2, rather ask for options that they anticipate will last until 2014. What guarantee do shareholder have that Wave will not handout 500k to 10 existing senior managers at $3 just before some major announcement, (ie. Seagate closing deals, Hitachi coming on board, the gov. ordering drives, etc. etc.)to reward existing management?
He should explain, why now, why so much, and why the big hike on 500k to any single person.
I can understand the need to attract new talent, however I would not like to see the existing team have a land grab of options, to keep pace with the options they may hand out to new executives. Because if they handout 500k to the "new VP of Japan operations" and Sks and Feeny are granted a similar amount, they won't feel any pain of dilution. I'd like the management team to be on the same team as the shareholders.
If SKS can explain sound and rational reasons for their options proposal, I will give it my yes.
AI
