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To: abcde_98 who wrote (1531)	3/20/1998 11:32:00 AM
From: David Aegis	Read Replies (1) of 2946

abc, Bob and all--I am all in favor of open dialogue. The SVG preannouncement does not jive with recent news (for example Intel's push to .25 and .18 micron processes or IBM's announcement that it would act as a .25 micron foundry for IDTI's pentium clone). If we work together, hopefully we can arrive at the truth ahead of the broader market. I would love to see SVG adopt some sort of EVA employee incentive system. EVA matches bonus payments to specific performance metrics (for example reducing cycle times on Micrascan production) that are in direct control of employees. Every other company that I have invested in that has adopted EVA or an EVA-like system has had above-average gains in operating results and stock market returns. abc--what sort of incentives are provided to your contact at the Lithography division? I have heard from other divisions that employees get profit sharing. However, since profit sharing is not tied to activities (performance "metrics") directly controllable by the employees, it is nowhere near as successful at creating value as an EVA-based system. --David

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