This is an internal consulting-type question, and how to get compensated in such a situation...
Assume for a minute:
I'm a CEO at "Company" XYZ, MKT CAP $1 BB. So far, my input to the board of directors and the company directly has helped improve the company greatly.
I reckon that, going forward, my ideas/direction can turn the company into a firm worth 2 Billion Dollars (i.e. double it's value).
However, I want to profit substantially off of this, if I am able to double the firms profits.
Here's my current plan on how I might profit:
1, First, I would purchase long-term call options (from "Company XYZ"). These would be considered exotic options. I would purchase (with the help of a "Lender ABC") 25 million dollars worth of these options from Company XYZ.
Then comes the hard part- I double the companies value through my ideas and direction.
Then, once the stock options are worth exponentially more, I sell them back to the company, or an outside source, after paying back lender ABC, say $50MM.
My questions to you all:
1. Would it be feasible to obtain a lender to help me buy the $25 million worth of exotic call options in such a scenario?
2. Assuming the company's board of director's believed I could double the company's value, would company XYZ likely sell $25 million worth of exotic options to me? Would they be able to sell exotic options to an employee?
3. Has anything like this every been done? Has a key employee of a corporation ever had so much faith in their ability to turn a company around, that they PURCHASED stock options from their employer? Can it be done?