Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 160.87

-3.1%

3:28 PM EST

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To: David E. Taylor who wrote (114522)	2/26/2002 6:34:07 PM
From: JGoren	Read Replies (4) of 152472

I think you are basically right. Most employees hold their options until close to their expiration dates. They assume they will continue to be employed and they will have more options granted to them, think the price will be higher later and they get the best value. Plus, as engineer points out the tax bite can be pretty steep. Now, those employees who own a significant amount of stock, generally exercise every year--for Qcom from about November into early January. They don't want all their eggs in one basket, so they receive new options, exercise and sell their shares and pay their tax (which is at ordinary income tax rates). On many top officers their overall number of shares attributed to them really doesn't change all that much because they are getting new options. If I held options at the prices you indicated, I would hold for another year or two in the belief that 35 bucks is way too low. Remember, the point of the long term options and vesting is to encourage the employee to do great things, stay with the company and look to the long term value of the stock.

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