Everyone needs to have ownership of the problems and the upside - hence stock options. It's not a good sign where they participate on the upside but not the downside. They are bonuses and not pay. Don't structure them as options if you don't want it to be a "carrot/stick" type thing. Just give them cash bonus. But if they expect to make extra $$$ when the stock goes from $0 to $100 - then they also need to accept the potential that they may not get that benefit. Shareholders had real losses.
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