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Politics : Ask Michael Burke

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To: Bilow who wrote (83051)8/17/2000 9:08:15 AM
From: sjemmeri   of 132070
 
>So my conclusion is that paying employees with options is a good idea only for companies that are growing at extremely high rates and/or that have an extremely high market cap, compared to their labor costs.

As others have stated, whether compensating (I like that better than paying) with options is a good idea is an entirely different question than whether to view them as an expense or dilution. There is no doubt that there are abuses and bad business decisions in the marketplace. Also, as an investor, one would be prudent to not assume that employees will be satisfied with option compensation forever and to consider that they might want cash in the future.
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