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Technology Stocks : Intel Corporation (INTC)
INTC 35.53-1.1%Nov 14 9:30 AM EST

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To: Michael Bakunin who wrote (97219)1/24/2000 6:57:00 AM
From: nihil  Read Replies (1) of 186894
 
If options aren't compensation, what are they?

Now we see why Buffet's performance has been falling off. He doesn't understand performance incentives. Incentives are not costs, because they cost nothing unless performance increases. Some businesses seem to think that one can save money by not paying sales commissions (remember DEC? and GUM?). Options are only costs if the stock price goes up. You never hear people whining about the cost of options at AMD. The only thing stockholders complain of is the repricing of options at AMD.
I think study will show that Intel's commitment to paying options not only to management, but to engineers, and then everyone has contributed to, and perhaps even caused the "new economy." Noyce and Moore were eager to innovate and live by their employees wits. Engineers got virtually nothing for their inventions (as Noyce and Moore had not been enriched at Fairchild, even though they (with others) started it.)
I can think of a perfectly simple test. Please, someone, trot out a company that keeps all profits for stockholders and top management, and also has one of those first quadrant rectangular hyperbola growth curves. Just one!
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