read the S8, management wants to take 20-25% of the stock from the shareholders and give it to themselves. They also gave away a boat load of free shares to directors to bribe them to agree to the corp heist. People should stop blaming MM's and talk to the greedy execs.
I don't like how officers and employees dilute ownership in any of these publicly traded companies. They already get great salaries and great benefits then they get greedy and give themselves monster stock options at much lower prices and get to take advantage of the growing company. They like to say hey we helped it grow but that is what the salary and great benefits are for. I guess the good news is that those shares have a price of 8.70 a share to be purchased. But still I have always hated this side of Wall Street. Companies usually sold shares in a company to raise capital not to reward employees and officers.
If you look at a company that has been publicly traded for a very long time you can see that the ESOP plans are responsible for most of the dilution after the companies have become stable and strong.