Replies to post #65795 on Ayala Pharmaceuticals Inc (ADXS)

[jckrdu]

In the recent filing of the new CEO's comp package, he's getting 250,000 RSUs that vest over 3 years, plus...

750,000 stock options priced at today's closing price, which was $1.62.

That total of 1M shares is about 2% of the company. Probably about what I was expecting.

Tying this back to your post with some thoughts on whether the new CEO is aligned with shareholders...

The new CEO is going to be very motivated to make money on those 750,000 options @ $1.62. Only way he makes money on the largest piece of his equity stake (the 750k options) is to get the pps higher than $1.62. If he has to do a reverse split, he'll wipe out the value of the 750k options.

While I would have liked to see his options priced higher, maybe this deal isn't too bad, as IMO it keeps him aligned with shareholders.

[hdwrsft]

It sure won't take him long to figure out when another capital raise is necessary and when to pull that trigger.

I fear that Christmas won't be so merry here after all.