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Politics : Ask Michael Burke

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To: Les H who wrote (79976)	4/22/2000 10:20:00 AM
From: Les H	Read Replies (2) of 132070

Dot.com workers have been feeling the pain. According to Matt Ward of WestWard Pay Strategies in San Francisco, more than 25% of employee stock options are now in the red. New accounting rules mean that repricing them down will count against profits. It is possible that this will make employees even more willing to do their own repricing, by taking a job elsewhere. Potential new recruits will be sceptical about promises from start-ups about possible options gains after a swift IPO. The bleeding of executives from traditional firms will slow down and may even reverse. A few months ago, the biggest risk seemed to be the opportunity cost of staying put. No longer. economist.com Also, economist.com

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