[sokoloff]

It’s a negotiation; each side can propose the terms and however they mutually agree is how business gets done.

A rational exec (or employee) will look at the offered terms and compare them against their next best option (their “best alternative to a negotiated agreement”)

A rational shareholder/board will do the same. In many cases, if the board believes the shares are dramatically undervalued because of the current pandemic, they might prefer to rent executives for cash rather than renting them for shares which are in their mind undervalued at the moment.