Richard,
Talking to myself again. Found this over on Yahoo. Seems rather positive.
<<Tyco CEO Says Management Option Awards to Be Performance-Based
New York, Nov. 12 (Bloomberg) -- Tyco International Ltd. said stock options awarded to senior executives will be
exchangeable only if the world's biggest electronic-connector maker doubles its per-share profit and cash flow in three years.
The new policy applies only to options awarded in the future, said Tyco Chief Executive Dennis Kozlowski. The move
isn't a reaction to a 17 percent drop in the stock since an accounting controversy arose a month ago, he said. Kozlowski
announced the change at a meeting with analysts and investors in New York.
Under the previous policy, options vested over a three-year period and weren't tied directly to the company's earnings
performance. The change reflects the company's interest in demonstrating that it can meet financial goals, Kozlowski said.
``Both criteria must be met,' Kozlowski said. ``It's us putting our money where our mouth is.'
Under the new policy, Options will vest three years from now at increasingly higher strike prices. One-third of those
awarded will vest at 53, one-third will vest at 65, and another third will vest at 75.
Tyco shares fell 13/16 to 43 1/16 on the New York Stock Exchange. The stock has fallen since Oct. 12, when an analyst questioned whether Tyco uses reserves to boost earnings, which Tyco denies.
Nov/12/1999 19:33
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Richard |
