Dave,
re: One should not look at options and say, what did this person do to deserve that option grant. One should say, if that person left, what would be the impact and is this option enough to ensure that doesn't happen.
I don't think this issue would have come up if we were talking about 1000's of options, even 10's of 1000's of options. But we are talking millions. Not in total, but for each of these executives. This could have a significant impact on earnings, something I would like to see someone quantify.
Hopefully, we can keep Maloney with much less than 2.7 million option shares. I happen to think the guy is pretty good. But I think we could find a replacement if it comes to that.
Why not give him a huge bonus based on the performance of the communications group? Set goals, and if he exceeds those goals, we make him rich (and he makes us rich).
SV has reinvented compensation with massive options. To the outside world, it looks as if they are colluding to make each other rich, and putting it to the folks that put up the (risk) money. Certainly that would be the truth about most of the internet companies that have come and gone in the last five years. It's a gold rush mentality, but it appears the easy gold may have played out.
These guys are not growing businesses by 50% a year anymore. They are managing a cyclical business in a tough marketplace, something we've all done in the past. But they are being compensated as if they just invented (and patented) the wheel.
John |
