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Wednesday, 17 September 2014

The rich get rich

I noticed that directors often get share options when they start a new position in a new company. It's only when you see just what that means The rich get rich and the rest of use just get on with things.

Today i saw a director take up an option on 850,000 shares and they paid only £0.2179 per share a total of £185,215.00 and then immediately sold them for £1.60p each a total of £1,360,000.00 a difference of £1,174,785.00. To make it worse the person would probably have off shore accounts or some clever way to avoid paying the tax.

If that's not bad it gets even worse, the same person has further options of another 2,827,809 shares value today if sold of £4524494.4.

Not a bad perk for just doing a job, if i wanted to buy the same shares the price as i type this is £1.68p each. 

From the London stock exchange. "A company director exercised an option over 850,000 issued Ordinary Shares held within the Company's Employee Benefit Trust, at an exercise price of 2.719p per Ordinary Share.
The director then disposed of 850,000 Ordinary Shares at a price of 160p per Ordinary Share. Following this transaction, The director has an interest in, via option, 2,827,809 Ordinary Shares, representing approximately 4.24 per cent. of the Company's issued Ordinary Share capital. "

All the above is taken from Published accounts from the  London Stock exchange.

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