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Politics : Ask Michael Burke
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To: Freedom Fighter who wrote (67720)9/16/1999 12:58:00 AM
From: Richard Nehrboss  Read Replies (1) of 132070
 
Wayne,

>> But there is NO doubt that for some companies 20%-50%

I believe most agree that MSFT is a very aggressive company when it comes to ESOs. As one of the most aggressive companies, they take a hit to earnings of 19% when "immunized". If this is not in question, I'd prefer not to see the number of 50% thrown out (which is a %250 greater than 19%).

>>not benefiting existing shareholders

I've been CEO of small high tech company, and I have to take difference to this statement. It greatly benefits existing shareholders to attract talent, and reward them based on merit.

>>vanishing free cash flow

I'd need to examine companies on a case by case basis, but often shares are not repurchased for ESOs. They are taken from an approved pool out of authorized shares. In this case, it has a dilutive effect, but does not decrease cash flow.

Richard
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