Management needs to accept risk too
IDCC is a risky investment. Its volatility has proven that. When you buy shares in this company, you accept risk. Management gets well paid and, in addition, has gotten lots of free options. Management has shown that they can have some influence on the price when they get the options and when they sell them, something the shareholders can not do with their shares. Where is management's risk? To properly "align the interests of management and shareholders", we BOTH need to accept risk. Otherwise conflicts of interest are inevitable.