But I do question the corporate option culture
Actually, I question it too. But I think the problem is at the top, that is my issue. Its more of a case by case basis. For example, if Apple never incented Steve Jobs to return, the company would be gone. So those options were well spent. Otoh, Computer Associates treats their company like their own personal piggy bank and I am against that. I don't want to throw the baby out with the bathwater which is why I am against options expensing. I worked in silicon valley in the 80s when there weren't many options and coincedentally or no, there wasn't much happening relative to the 90s.
Deferred stock is far more quantifiable and, I think, I better arrangement for long term value and developing loyalty
I like deferred stock. The only issue is whether this approach curtails options and we are back in the 80s mode of senior management getting these things and nobody else. Then you don't get any innovation and these US tech companies become identical to their counterparts in Europe or Asia, imho. Flat management is the key to innovation I think. You probably know Larry has always been willing to incent key engineering talent and I think that is why Oracle is where it is. Larry "bends the rules" when he wants a new team to develop something, he grants a lot of shares which other companies like IBM would never do because they have personnel policies to adhere to.
WRT sebl, I don't want to make a judgement completely here because I think we might be looking at Sebl in the same tradition as yahoo 2 years ago. When things were at their bleakest, I mean. This psft mess is going to help sebl. Lets see where they are next year. I do know one thing though, sebl was a generous company wrt their employees, it wasn't just the top management, and they have been honest about it all along. So it is somewhat disingenuous for people to show up at their annual meetings to bash them on this options issue now, especially if they are not invested in sebl. The climate has kindof become something of a public lynch mentality and I don't appreciate it because I can see the level of foresight and competency most investors have wrt business just from being on these stock boards. If you let individual investors set priorities, pay, etc. for companies, it would be about a year and then the entire system would shut down. |
