MyPoet, this is (at least partly) explained in the latest news release:

"In an effort to reduce cash expenses, and following a review of peer group companies, the POET Board of Directors recently revised its compensation. This included reducing the cash compensation paid to its Executive Chairman, and effective April 1, 2017, eliminating per-meeting fees and reducing the annual cash retainer paid to directors. In the recent past, the demands on the Board to address key strategic and operating challenges resulted in frequent and numerous meetings, with per-meeting fees representing a substantial portion of total director compensation. In the newly-adopted program, the Executive Chairman is paid US$200,000 annually. The annual cash retainer for each director is reduced to US$30,000 and each committee chairperson receives an additional annual retainer of US$10,000. The balance of director compensation is paid in stock options at a value of US$90,000 annually, plus US$10,000 per year in value of options to each committee chairperson. The valuation of options grants is based on the Black-Scholes option pricing model."

I find it remarkable that Suresh is the only director to receive options. And I like the fact that a significant portions of options went to employees.

Anyway, all of these options will be in the money only if the share price goes northwards. This might indeed work as an incentive.