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Technology Stocks : Corel Corp.

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To: nasdaqian who wrote (9712)4/19/2001 4:29:06 PM
From: Peter Dierks   of 9798
 
The theory that stock options align employees interest with the stockholders is not entirely invalid. It has been taken to the extreme.

Management tends to make this a disproportionate reward to themselves. Robotic investors and fund managers vote yes, no matter how disproportionate the rewards.

When stock prices decline, I lose money, why should the employees be shielded from the realities of the market. They can have a much larger impact on the performance than my influence. Sometimes people leave for all the right reasons, like they are greedy, and failing in their attempts to steal all of the assets of the shareholders.

The only company whose employee stock rewards I routinely vote for is Veeco Instruments.

Peter

PS - Just because stockholders are being reamed, doesn't mean I won't buy the stock. It does effect my willingness to hold during downturns (i.e. loyalty - isn't that what you are worried about in regards to employees). If there is a trade off between loyalty of the employees or the investors, should the correct answer lie at either extreme. Whose company is it anyway? (Correct answer - management's)
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