Discuss Go2Net's acquisition of our beloved SI Message Board

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Pastimes : Discuss Go2Net's acquisition of our beloved SI

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To: SI Brad who wrote (357)	5/13/1998 3:14:00 PM
From: White Shoes	Read Replies (1) of 446

Brad, please help me out here. You say Options are granted at the current price of the stock, so incremental dilution to shareholders occurs only if (1) the stock goes up from the point of grant and (2) the employee stays with the company long enough for the options to vest. From my understanding quite a number of the options, and all of the 'newest' ones, will be (or were) granted at $7.90 (a recent stock price). The stock, needless to say, has already "gone up from the point of grant" to the point where the recently issued options are disproportionately cheap and certainly don't act as 'incentive options'. Anything you could say to clarify recent grants of options at these much lower prices would help me to better understand this. Personally I don't have an issue with this except insofar as it affects the number of shares outstanding and the level of dilution, and thus of course the stock price. You then are saying that an increase in the option pool doesn't have anything to do with options granted, I take it? So any new options actually granted would have to be at current prices? So how many were granted at lower prices?

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