>> this "game" works as long as we are in a bull market and employees accept options in lieu of salary.<<
Interesting point, Skeeter. I work for one of those well-known companies that grants stock options to its employees. I joined them a bit over a year ago, and my first options are now vested. They're also practically worthless at the moment, because the stock has not appreciated during that time.
Nevertheless, I still hold hope that 5 years down the road, they could be fairly valuable. Maybe I wouldn't feel that way if we were in the middle of a bear market, I don't know. But, each year, new options are granted to me. If we were in a bear market, then there's the likelihood that those options would become even more valuable, once a new bull market began. Assuming, of course, I could hold on to them that long.
So, IOW, I feel that options will still be a viable incentive to attract key personnel, even in a bear market. But I suppose we won't really know until we're several years into one.
Ken |
