The value of the stock option grants is NIS 7.5 million.
The board of Oil Refineries Ltd. (TASE:ORL) has approved 4.5 million in stock option grants to both the company’s chairman and CEO. The value of the option, using the Black and Sholes method, is NIS 7.5 million, or NIS 3.75 million for each of the two men. The options are exercisable for three years after a one-year vesting period from the date of the grant.
In addition to the large amounts of the stock option grants, they also dilute the holdings of Oil Refineries shareholders, even as it creates an incentive for the company officers to create value.
Oil Refineries is controlled by Israel Corp. (TASE: ILCO) and Israel Petrochemical Enterprises Ltd. (TASE:PTCH).
Published by Globes [online], Israel business news - www.globes.co.il - on September 9, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007