Elan's directors could be in for a nice windfall next year if the company's recovery from its share price collapse of two years ago remains on track.Elan announced the grant of options to the 14 members of its board of directors yesterday at an exercise price of $16.27 per share.

The options, the first tranche of which can be exercised next March, are already "in the money". At Monday's New York closing price of $19.95, the shares were trading at $3.68 or 23 per cent above the options' exercise price.

The company awarded its president and chief executive officer, Mr Kelly Martin, options to acquire 60,000 shares while chairman Dr Garo Armen received options over 50,000 shares. Company secretary Mr Liam Daniel was granted options over 30,000 shares while the other 11 directors were awarded options over 40,000 shares each.

They include Bank of Ireland governor, Mr Laurence Crowley, former head of IDA Ireland, Mr Kieran McGowan, head of equities at Davy Stockbrokers, Mr Kyran McLaughlin, and former head of Merrill Lynch, Mr Dan Tully. All four served on the company's board when its share price crashed from more than $65 to less than $2 two years ago.