I'm sorry you feel that way Ben. I post based on questions I get, or comments I receive. The company's releases are sent out through normal channels which do not always get posted here or on the company's web site very quickly. I didn't receive any calls or comments on the repricing.
Most shareholders realize that contractors, employees and even directors have to be compensated for their time, effort, and risk. Very few people in this world work for free. Compensation can be cash, or by some other means. When a company wishes to preserve cash it will often use other forms of compensation. Options are one such form.
When options are far out of the money, they cease to be a form of compensation. If they are out of the money because of mismanagement then that is management's fault, and repricing options should not be considered. If the options are so far out of the money that they cease to be a form of compensation, and the drop in value is due to external issues (such as declining commodity prices, increasing interest rates, declining general (or sector) market) then these are factors beyond the control of management. In this situation, rather than increase cash compensation it might make much more sense to re-price options. The VSE recognizes this has formulated a policy to facilitate it. Most shareholders agree.
Dave |
