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Posted On: 09/16/2020 9:32:39 AM
Post# of 148878
Companies do not need to rely only on stock options.
You can issue Restricted share units (RSUs) which are outright gifts of stock so at $10 these already have some value along with appreciation. Potential during the vesting period. There are always less RSUs issued than options since they already have some value and are still worth something even if stock drops.
For executives performance share units ( PSUs) can be offered which are essentially the same as RSUs except that the amount issued is based on the performance of the individual or the company. I favor these for CYDY.
These type of awards allow the available shares to last longer since less are issued than options.
In many cases there is is mixture of all three used - sometimes with the same person - this still results in more prudent usage of share counts.
IMO
You can issue Restricted share units (RSUs) which are outright gifts of stock so at $10 these already have some value along with appreciation. Potential during the vesting period. There are always less RSUs issued than options since they already have some value and are still worth something even if stock drops.
For executives performance share units ( PSUs) can be offered which are essentially the same as RSUs except that the amount issued is based on the performance of the individual or the company. I favor these for CYDY.
These type of awards allow the available shares to last longer since less are issued than options.
In many cases there is is mixture of all three used - sometimes with the same person - this still results in more prudent usage of share counts.
IMO
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