How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 478.53

-1.0%

Dec 12 9:30 AM EST

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To: David R who wrote (71389)	7/19/2002 4:38:39 PM
From: jonkai	Read Replies (1) of 74651

The problem with ESO's is only with the top-management where the number of shares granted is so large. For the rank-and-file, ESO's provide one of the strongest incentives to work 60+ hour work-weeks. that is no longer true, what you describe was the case back when ESO's were used properly at the start of ESO's.... now the MOST options granted are to the rank and file now adays.... look at where MSFT grants options, they are to every single employee EXCEPT the top management... even the temporary workers sued to get these ESO's and WON IN COURT to get them..... (course Url believes they are not valuable at the moment they are given) whatever, when employees sue to get them.... and studies have shown that ESO's are not aligning employee rank and file interest to that of shareholders the same as cash does, or regular shares..... MSFT was the first to use ESO's as a cash source as the main objective, they've distorted the original intent of the program to become an accounting trick.... now it seems every tech firm is copying the trick..... worse, when the stock goes down, MSFT just "reprices" these ESO's by reissuing them at new lower strike prices so that all these rank and file employees are playing tennis with the net down, where the owners, the shareholders, get no such get out of jail free card..... completely separating employee's interest from the shareholders....

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