(SGI.v) oops (SGU.v) is your example from this morning’s NR, but it’s far from the only exploreco jumping on this bandwagon:
The Company has also granted a combined total of 4,000,000 incentive stock options to the Board and Management of the Company. The options have an exercise price of $0.06, expire five years from the date of issuance, and vest 25% immediately, and 25% annually thereafter through to the third anniversary.
Go on, ‘splain me why they get incentive options that immediately vest, what’s the incentive involved? The incentive not to leave in the next three weeks? The incentive to cash in on the first flashy drill assay? The incentive to dump on retail shareholders just like the big boss does? The whole point of incentive options is to retain talent for extended periods, not to slip them a quick payola. Or at least it was like that when I was a lad, but this new trend allows others to climb on with the refrain of “Well, it’s the industry norm these days, what’s the problem? You should thank us! Shut up and finance my lifestyle, retail sucker.” Just another nail in the junior market coffin.