RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:ikehedges is not me on CEO
"holders of these instruments can buy new shares of SIC for less than the current market / trading price, thus diluting existing shareholders..."
When they buy the new shares money goes into the coffer that adds to the equity of all the shareholders.
It is not exactly a windfall for the option holders. It is part of their compensation and they take a risk that the options will expire out-of-the money.
When exercised in the money the compensation they gain is only the difference between the exercise price and the market price.
The options serve as an incentive for employees to do a good job so that a company will progress and with it the share price of a company rise and put the options in the money.