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Strategies & Market Trends : Employee Stock Options - NQSOs & ISOs
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To: hueyone who wrote (99)6/21/2002 11:14:08 AM
From: BiomavenRead Replies (2) of 786
 
Huey,

Yes, all companies report under FAS 128.

Seems to me you are conflating two separate issues:

1. Overall compensation levels, particularly of senior management.

2. The use of stock options in paying this compensation.

My personal view is that the compensation for top executives compared with middle/lower management is obscene. But I don't think you can blame stock options for this disparity.

If you sharply cut back the use of options, do you somehow believe this will better align outside shareholder interest with insider employee interest? I think not.

Options in my view are an essential tool for any small high-risk company. Employees accept lower wages in exchange for options. My view is that this is a win-win - it not only motivates employees but it makes them share the risk and rewards. (Note to the extent they have given up salary in exchange for options they have downside as well as upside).

Options can of course be abused - but so can other forms of compensation.

Peter
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