This is a typical executive benefit. Nothing unusual or suspect here IMHO. There were are a lot of options/warrants outstanding due to the Miami Subs and Kenny Rogers deals. You can get information on options outstanding, exersize prices, and vesting schedules in the 10K (I usually search text for "outstanding options"). If the stock price goes up, empoyees will most likely exersize and sell resulting in more shares being outstanding and diluting EPS. The company will get cash based on the grant price. For example, if someone exersizes 1 option of Nath granted at $3 and sells at $13, Nath will get $3, but there will be 1 extra share outstanding to dilute EPS. Diluted shares outstanding is an attempt to represent unexersized options. Companies are also now required to report stock option expenses to account for this activity. Expenses are calculated using accepted financial models. However, if you are a long term investor like me, the true cost of options is immeasurable. If stock price rises dramatically, it may not be practical for the company to re-purchase shares issued resulting in a permanent increase in shares outstanding and diluting all future earnings.