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Technology Stocks : Intel Corporation (INTC)
INTC 35.81+0.2%Nov 25 3:59 PM EST

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To: The Duke of URL© who wrote (174230)4/25/2003 3:50:55 PM
From: Lizzie Tudor  Read Replies (1) of 186894
 
DO NOT CONFUSE DISCLOSURE AND CONTROL OF COMPENSATION AGREEMENTS WITH their financial and tax effect. I have studied this problem years before you knew it was a problem.


Hi Duke and thread,

I'm sure that most here have read that Apple shareholders approved an options expensing measure against the rec of the BOD. What this is saying is that the shareholders are dissatisfied with the BOD (not that there is any surprise in this)- but I would suggest that those companies like intel who are voicing loud opposition to options expensing draft an executive pay proposal and put it forth to the shareholders immediately.

The Apple board could have thwarted this vote had they taken some sort of action to stem executive compensation in some way, imo - and most importantly, tie all pay or any options grants to stock price and performance/profitability. If the stock just sits there or goes down and financial performance is bad, execs should not be compensated heavily.

The fact that these boards are just sitting there, in the middle of what is obviously something of a shareholder revolt, is amazing to me.

My personal view is that I don't want options expensing, but I sure can't defend some of these pay packages for executives in this decline except for companies that have really performed exceptionally in taking share (Cisco is the only one really)- and even then, executives in performing companies should be paid well, not obscenely.
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