You need a lesson in accounting. Stock comp under FAS123R is a non-cash accounting charge to earnings. It's based on the black-scholes valuation model, which most companies use to value stock options. In reality, it may or may not mirror what the executives actually receive when they sell their stock. In the case of the CEO, he had options awarded to him many years ago at $0.11 each. The FAS123R expense would have been negligible - however, with the stock price where it is now they are worth millions. On the other hand, options awarded now, which are being expensed at a much higher rate (in the hundreds of thousands of dollars), could end up worthless to the executive if the stock price does not exceed the strike price.
This company is well managed and they have an excellent product. They will do well long-term. My guess is that within 5 - 7 years they will be bought out at a nice premium by one of their competitors.