By James Langton
(May 3 – 16:20 ET) – The online banking software firm 724 Solutions Inc. has just filed its annual information circular. The firm is asking shareholders to approve boosting the options it can grant by 1.8 million. This would increase the dilutive potential of the firm’s options overhang to 18.6%. It notes that it needs the additional options to enhance its ability to attract top talent to the firm.
In 1999 it attracted a new chief financial officer with 1,377,000 options on top of a $100,365 annual salary. The options were granted at prices ranging from $1.71 to $10, amounting to about 24% of the options granted in 1999. The firm’s stock has traded between $60 per share and $345 since its February IPO at US$26 per share.
Chief executive Greg Wolfond didn’t get any options in 1999, but he does hold 8 million shares of the firm, about 22% worth. Instead, he received $218,434 in salary in 1999. He was the only top executive to also receive a bonus, $126,768.
The firm currently has nine directors and proposes to increase that to 12. It is nominating Indigo Books and Music Inc. CEO Heather Reisman, former CIBC personal and commerical banking president Holger Kluge and Tory, Tory lawyer Barry Reitman for the new spots. The new independent directors are being added to meet new governance requirements imposed by NASDAQ.
The firm notes that it is in compliance with 12 of 14 corporate governance guidelines issued by the Toronto Stock Exchange.