Amrad CEO asks for fair deal on options price

In an unusual move, Amrad (ASX: AML) CEO Pete Smith has asked for options that are due to be granted him after approval at next month's AGM to be granted at the same exercise price as those granted to other employees of the company.

Amrad shareholders will be asked to approve the grant of two sets of options for Smith, one set of 600,000 options priced at $1.15 under the company's option incentive plan, and a second set of 400,000 options priced at 110 per cent of the market value of one Amrad share on the issue date as part of the Key Employee's Share Option Plan (KESOP).

Amrad's shares are currently trading at about $0.48, so options would be granted at an exercise price of about $0.53.

But Smith has requested that the KESOP options be granted to him at the same price as those granted to other employees -- $1.15.

"I just thought it was inappropriate that I should get options at a different rate to everyone else," Smith told Australian Biotechnology News.

Biotech analyst Mark Pachacz, co-editor of Bioshares, said Smith's request gives a positive signal to shareholders.

"I think that's an extremely positive sign for the company that he's not there just for himself, but there to build the company and to put it first and foremost," Pachacz said. "It's very encouraging to thing things like that in the sector."