I think that's pretty good. I am not per se against stock-based compensation.
But I strongly believe that stock compensation should be on prevailing market prices (not $0 or below market). They can profit from whatever increases happen from there, but they shouldn't be allowed to profit when the stock goes lower. Otherwise, it is a contorted compensation system where they win irrespective of the stock does - the only thing that would change is the amount of profit...my feeling is that they should not profit when their own/corporate performance has been below par or worse.