Alright, some poster made some comment about Intel executive stock options so I found some stuff:
1. the first is that cash bonuses were down and were made up by a double dose of stock options, which is alright because it protects cash flow, but it seemed to be a trend, which could be problematic, so I undertook a little study.
2. It appears that the outstanding "dilution" is going down at Intel.
This, of course, is not unpleasant news for existing shareholders.
My calculations are as follows, and they are based on TOTAL outstanding stock PLUS options to acquire out standing stock not yet exercised*:
(in 000,000s)
1997-7,159 shares
1998-6,974 "
1999-6,900
2000-6,976
2001-6,794
2002(Q1)-6,685
What I think this means is that total company buy backs and reduced options (sic!) have reduced the total outstanding.
I tried to eyeball the total issued, and it seemed in-line.
In other words, it does not seem to be a situation that the real outstanding is being redeemed fast than stock options are being issued. (and on a preliminary study, like this, I don't think that is of significance, anyway)
If my conclusions are correct, this would seem to be a very favorable situation.
Comments, please.
* If anyone wants to check my work, I used reported total earnings divided by diluted earnings per share. |
