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SCO's Motion to Give Stock Options to 4 Executives

By Pamela Jones et al.

SCO has filed a motion [PDF], titled Debtor's Motion for (1) a Determination that Stock Options Granted to Executives Were Awarded in the Ordinary Court of Debtors' Business and (2) Continuing Authority to Grant Ordinary Course Stock Options. SCO says it consulted with the US Trustee's Office and it says it takes no position on this motion. But SCO says they are filing the motion "in an abundance of caution." And it has filed a motion [PDF] to be able to file evidence and give testimony about the stock plan under seal.

Well. I would want that too, I'm thinking, all things considered. It's comforting to know there are still people on earth who still want SCO stock. Relax. Just joking around.

The first motion has to do with stock options granted under the SCO 2004 Omnibus Stock Incentive Plan, attached as Exhibit A [PDF], options that SCO granted on August 26, 2008. That was Tuesday. So they granted them and now they are asking the court to say it's OK and to let them do it again in the future.

The plan "is designed to promote the interests of SCO and its stockholders by incentivizing and rewarding employees who make a long-term contribution to the success of the company," SCO says. But trust me, if you want to know just how incentivized the SCO executives have been, you probably want to read their 2008 Proxy Statement, filed with the SEC on March 5, 2008. Looking at both documents together brings them both into a more nuanced context.

Full post as published by Groklaw on August 28, 2008 (boomark / email).