Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 37.81

-4.3%

Dec 12 9:30 AM EST

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To: Amy J who wrote (174451)	5/9/2003 8:45:57 AM
From: rkral	Read Replies (1) of 186894

OT ... Amy J, re "I think the doubling up on the shares on the way down appears incongruent to investors." It may appear incongruent to investors, but that is what they should expect .. when the stock price declines over a few years. Consider .... A grant of 100,000 INTC NQSOs with an exercise price of $32 has a fair value of .. say $1.6MM. It follows that a grant of 100,000 options at $16 only has a fair value of about $0.8MM. So pretend you're an executive expecting .. and getting .. $1.6MM per annum in "non-cash" option compensation. And your last grant was the 100,000 NQSOs at $32. Would you really be happy then .. getting only 100,000 options at $16 .. for a value of only $0.8MM? Might you not be de-motivated? Might you not be looking elsewhere for better compensation? Does your compensation committee want you to feel that way .. and want that to happen? Regards, Ron

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