themselves more options. If they want the to won FUN they can buy it the same as the rest of us. Options will dilute earnings and come back to haunt shareholders later. If the management sees the company as being on track they will buy shares. If they cannot run the company well, then they should go not be given options.
But won't those options be worthless to them unless the share prices start moving up? Unlike cash incentives which would have immediate value. The options won't dilute earnings, but rather the redemption and subsequent purchase of shares, and they shouldn't be redeemed unless we see the price go up. I'll agree they don't deserve bonuses of either kind if the unitholders are sitting here going nowhere. Isn't there some tax reason that options are preferable, I thought I remember reading that somewhere. I can see the point some mentioned a few posts ago about it not being real fair that they may have a low strike price, lower than many of the investors basis.
mlbbb said, "If the management sees the company as being on track they will buy shares". While this may be true, if earning and the company don't get back on track, they won't buy the shares, they may still receive cash compensation packages/bonuses, and unless we follow the advice of a boy and his dog, we could still be left holding a stale stock (er..partnership).
Now this said, I still see a bright outlook for FUN, am a little upset with the press release, but don't believe that the earnings growth (or unit price growth) stops here, by any means.
management is granted the options that the tradeoff, which is that shareholders get to see a high dividend return, will be true. The dividend can still be cut in the future but those options are still out there. I still say pay managemsnt on a cash basis. When they start buying shares, you can be sure the price of the stock is going up.