FrontRange shareholders are to vote on a proposal to grant an additional 19.6 million share options to acting CEO Michael McCloskey.
The group says the move is aimed at retaining McCloskey for the long-term, with the granting of the options conditional on his acceptance of a permanent appointment as CEO of FrontRange and chairman, president and CEO of its 100%-held US subsidiary, FrontRange Solutions.
McCloskey, who is based in the US, would then have share options amounting to 10% of FrontRange on a fully diluted basis.
FrontRange says in a circular to shareholders that it is common practice in the US to remunerate executives in the IT industry with share options.
"FrontRange has to compete with significantly larger, well-funded competitors such as Microsoft, Sage and SAP," the circular says. "FrontRange is a developer of its own products and is thus completely dependent on the calibre of its intellectual capacity and human resources if it wishes to succeed.
"The FrontRange board is satisfied that Michael McCloskey brings a new depth of experience to the management team. In addition, he has already recruited and will continue to attract the top-calibre talent that is required for FrontRange to grow both profits and sales in a very competitive global market."
The resolution requires the approval of 75% of shareholders voting at a special meeting to be held on 16 April.
The group says key shareholders have expressed their approval through irrevocable letters of undertaking.
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