In all fairness, I think it is only the last 3 or 4 years that the top executive options grants have exploded upward.
It would be interesting if you redid your numbers, to note the equity increase over those years and compare to granted and unexercised stock options.
Also when comparing outstanding stock, due consideration must be made to contemplate unexercised options, which may represent an unstated obligation by the company to issue more stock in the future.
And some contemplation of market cap, the total value of outstanding diluted issued shares went from 60 Billion to 180 billion, an increase of 300% while retained earnings grew only, as you suggest, 37%.
How about them apples?
True, Carl, and others, confuse the accounting for stock options with the fact and conditions under which they are granted, but some of his rant is not totally lost.
The question is how many options have been granted to upper management and for what.
For instance, Carl lambasts the attorney Dunlap for his one time bonus, but fails to remember that Intel skated a huge nti trust suit and likely demolition by Integraph type actions, which presumably, was successfully orchestrated by Dunlap and the lawyers under his control.
Just how much is that worth?
And when carl is rambling on about compensation, it is of interest to reflect on the Disney company. Eisner promised Katzenburg 325 Million dollars if Katzenberg did about 5 billion dollars worth of gross on such movies as Lyon King.
Eisner then stiffed Katzenberg for the 325 Long. Katzenburg started Dreamworks which cost Disney about 5 Billion in future income, got a judgment against Disney and got his 325 PLUS, and may have cost Eisner his job.
True, you need to know stuff like this before you start a rant on salaries, and Carl doesn't seem to take this stuff into consideration,
But his rant about Pottruck and the compensation committee does have some truth. But the issue with Barrett must contemplate Tejas and Intel Capital,
don't you agree? |
