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Politics : View from the Center and Left

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To: TigerPaw who wrote (10340)1/30/2006 9:29:30 PM
From: TimF  Read Replies (1) of 541880
 

In the stock-decay plan there would be no enforced savings.


True but than I don't see how they lead to your earlier concept of somehow inheriting something like the income stream from wages.

Also I agree with Karen that such a plan just gives people less choices. Even if they can dump the shares immediately you have extra transactions and at least a minor degree of extra risk by having the money in the shares of their company. The employees can get rid of the risk for each new bunch of shares by selling them, but the shares could drop like a stone before they sell. That might only be the equivalent of losing half a paycheck (although many people would have a problem even with that), but also if their future income is tied to the value of the shares, you would get a situation where no one wanted to work for a company that wasn't perceived to have good long term prospects. Yes such companies are at a disadvantage anyway but not so much of one that they can't compete for employees. Under our plan I don't see how they could compete.

Generally I prefer having more choices in compensation that locking everyone in to one general plan. I think the people involved can decided for themselves how they want to be compensated better than you can decided for them. Its not personal, I think they can also decide for themselves better than I can decide for them.

Tim
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