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Technology Stocks : IATV-ACTV Digital Convergence Software-HyperTV

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To: StaggerLee who wrote (8148)12/2/1999 11:53:00 AM
From: Mike Fredericks  Read Replies (1) of 13157
 
Stagger-

Options vs. SAR's. Difference is that everyone else does Options. Here's why.

IF the option-issuing company simply issues new shares to cover exercised options, then the company does not spend any $ for those options. The money "lost" is what the company *could* have sold those options for on the open market. However, there will be no direct hit on the bottom line. In other words, you shouldn't see a line-item like we have been seeing for the SAR's. It was really annoying in 1Q '99 when the execs were paid several times revenues for that quarter in SAR's.

I have been yelling and screaming for them to go to traditional options for months now. I hope that whoever posted that the SAR's were exchanged for normal options was posting fact (don't have time to look it up myself). I also hope that all FUTURE compensation will be in the form of options not SAR's.

-Mike
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