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Technology Stocks : Dell Technologies Inc.
DELL 133.35+0.1%Nov 28 9:30 AM EST

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To: PMS Witch who wrote (148951)12/10/1999 11:38:00 AM
From: rudedog  Read Replies (3) of 176387
 
PW - re: Option grants as a performance bonus
There are several problems with this notion, not the least of which is that performance and reward are very poorly coupled, and the rewards are not visible to shareholders, who actually pay for them.

The mantra at DEC during much of the decline was "rest and vest" - those who had received option grants in the distant past could stop worrying about the current condition of the company and augment their income through sales of options from years before. Exactly the opposite of behavior the shareholders would have wanted.

The notion that Kevin Rollins or any other senior exec should receive in excess of $50M for directing the company in a way which returned about the same as a money market account just seems out of line - especially when those same funds, if applied to the balance sheet, could well have propelled the stock up. Would the BOD have approved a resolution saying "we hereby grant Kevin Rollins a cash bonus of $52 million based on his contribution to the exemplary growth in the value of DELL stock this year"? I don't think so.
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