Globes’ correspondent17.05.2001 15:44
The Hebrew daily “Yediot Ahronot” reports that Gilat Satellite Networks (Nasdaq: GILTF) is offering an innovative remuneration plan for its employees. Under the new plan, Gilat Satellite will allow employees to give up their current options, in exchange for new options, in six months or later. The exercise price of the new options will be adjusted to Gilat Satellite’s share price on the date the options are issued.
No Israeli company has ever implemented such a plan, but it is common among Silicon Valley companies. The plan is designed to strengthen employee motivation, in the wake of the collapse of Gilat Satellite from a peak of $180 per share in February 2000 to $13 today. The exercise price for the employees’ current options range from $23 to $130. The employees are being offered a better chance of exercising the options, but if they take this opportunity, they are also taking the risk of giving up their current options in exchange for options with unknown exercise prices.
The allocation will begin in six months, due to time restrictions imposed on the issuing of new options by Nasdaq-listed companies
Gilat Satellite now has 1,400 employees, after laying off 500workers. The company published its Q1 2001 financial reports,which showed a vy loss of $58.6 million, representing a per share loss of $2.50, at the beginning of the week.
Published by Israel's Business Arena on 17 May 2001 |
