TY and JK Companies-share options
The granting of share options means that the directors have the right to buy shares at the current price in a number of years' time. If the price of shares has increased, then the directors will make a profit based on the difference between the two share prices (current and the future price). Options appear to be a good method of rewarding long erm performances as they are normally granted for periods in excess of three years. However, there remains the issue that directors may attempt to increase share price near the option date.
