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Technology Stocks : Seagate Technology
STX 278.47+1.0%Nov 6 4:00 PM EST

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To: duedilly who wrote (7463)8/25/2006 1:33:08 PM
From: go_gatrz  Read Replies (1) of 7841
 
I really wish they'd all stop issuing stock options as a part of compensation. I know some want options so that they can get rewarded for superior stock performance (total compensation tied to stock performance). But they can come up with formulas that give the same reward in cash.

But more and more, the employees are just exercising the option and then automatically selling the stock. Especially the STX bunch. Then the option (now stock) becomes a "cost" that penalizes EPS quarter after quarter after quarter.

If they actually wanted to exercise the option and keep the stock, I could understand. But that rarely happens.
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