I'm rather bewildered by their announcement :

"Press release from Ship Finance International Limited, July 13, 2009

Ship Finance International Limited (NYSE:SFL - News) ("Ship Finance" or "the Company") today announced that there will be an adjustment to the share option awards to the Company's management team.

A total of 505,000 new options will be awarded to employees while all of the 355,000 previously awarded options to employees will be cancelled. The new options will be issued pursuant to the Company's Share Option Scheme and will have a five-year term with a three-year vesting period. The initial strike price will be equal to the weighted average share price for the three trading days following the date of this announcement, and the first options will be exercisable in July 2010."

How on earth can this be an "incentive" if the strike price is set at multi-year lows ? The strike price should be set at $25-30 minimum !
And in the same breath they award even 40% more options ? Looks like management filling their pockets with shareholder funds - not much different from the Options repricings at other governance horror-shows like Apple. I'm not used to that kind of corporate gov. from JF. and I'm astonished.

Downgraded to hold.