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Technology Stocks : Intel Corporation (INTC)
INTC 42.20+4.2%10:45 AM EST

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To: The Duke of URL© who wrote (166785)6/21/2002 3:54:53 PM
From: Amy J  Read Replies (2) of 186894
 
Hi Duke, RE: "likened eso to cash bonuses"

Options are not like cash bonuses and here's why: Cash bonuses are take-it-and-run vehicles (among other things that I take issue with), while options vest over time and have value only if they build value.

Getting back to the point of my previous post, if A = Options and B = Cash Bonuses, the point I'm making is:
a) Buffett accuses A of being at fault but ignores B. That observation is my point. (That's independent upon whether you can validly argue whether A and B are at fault, which I think was your point about not to dish bonuses to win the argument against options. Okay, got it. If not, just PM me.)
b) Buffett discounts positive motivation and the role options play in this and innovation.
c) Buffett doesn't understand high-tech.

RE: "I pointed out that cash bonuses are not only not fraud they are disclosed."

We're in agreement, so there's no need to repeat this sentence a third time.

RE: Buffett

Buffett has issue with options period. I've read a lot on his position going back to the early 90's too (and am not going to waste the time to dig it up) but his dislike for options expands way beyond what you mentioned.

Buffett dislikes options as much as he dislikes innovation and high-tech.

Regards,
Amy J
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