Brian Ector on last weeks awards exercise."If you could humour me with one more question on another topic to the extent you can comment or want to comment.
I noticed the insider filings last week where the suite of executives exercised incentive and performance awards for cash consideration and the filings came on the same day.
I ask this question simply to get a handle on corporate implications when it comes to exercise of these types of awards.
Is it a case of there being an automatic trigger due to tax implications and rules set by CRA that had these exercises take place at once?
Again, I fully understand if you choose not to explain this matter as it could be personal affairs of which I have no business in enquiring and I respect that possibility.
If there is an explanation regarding triggers of exercise that you can delve into briefly, I’d love to get a basic understanding of it as a retail investor.
Cheers"
Brians response:
"Hi xxxxxxxxx – the filings related to our long-term incentive compensation where share awards are granted once per year. The shares vest over a three year period and are now largely settled in cash as opposed to issuing shares. The intent behind settling in cash is to avoid the dilution to our shares outstanding at a time when we are actively repurchasing shares in the open market each year."