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Technology Stocks : Intel Corporation (INTC)
INTC 46.96-2.8%Jan 16 9:30 AM EST

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To: Ali Chen who wrote (97577)1/26/2000 12:09:00 PM
From: kash johal  Read Replies (1) of 186894
 
Ali,

Re:"intel options and stock buybacks"

Yes you are right they have spent $18Bn on stockbuybacks of close to 700mn shares. Or at about $25/share.

The great majority has been used to provide very lucrative options to senior management as overall stock outstanding has been somewhat constant.

That 18Bn is largely provided to senior management of say 6,000 managers or average of $2M/per manager.

You are absolutely correct that this is employee compensation.

However Intel is not alone in this. In fact MOST hi-tech firms provide extremely generous stock options.

As long as stock keeps going up from $1 in 1990 to $100 now no-one will complain.

If however they keep doling out the options and the stock dumps then folks will be complaining like crazy.

And thats probably the way it should be.

regards,

Kash
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