Typically share options are fine so long as the key management get aligned with shareholders’ interest, and they are not excessively awarded or abused. What I mean by excessive is not more than 10% (rule of thumb) of total outstanding shares. Using RMG as an example, the co has 574 million outstanding shares. In other words, the percentage is relatively small, or less than a percent. That’s fine for me personally.
You often get to see red flags when share options are also given excessively to someone who already has significant stake in the company. Heng Fai is one of the examples we brought up during the IQ meet-up.