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Technology Stocks : Dell Technologies Inc.

DELL 122.55

+4.4%

Nov 21 9:30 AM EST

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To: Walt Corey who wrote (43895)	5/20/1998 3:11:00 PM
From: Paul Merriwether	Read Replies (2) of 176387

<< Thats generally wrong. Options are a great way to FORWARD reward employees for good performance IF they hang around for the options to vest. This is generally a 3 to 5 year time frame AND the employee HAS to be continually employed for that period of time. My experience is that now a days it's tough to have employees stay 5 years so options are a very very inexpensive form of virtual compensation. >> While options usually vest over a 5 year period, the employees can cash out 20% a year. It is true that most don't(because of greed!) some(like myself) do so every year. Also, with options, most employees DO stay, as long as the stock keep performing well. In other words, imho, options are meant to hold on to prized employees (the "golden handcuff"), and not a way to cheat them with "inexpensive virtual compensation". No Dell employee in his right mind would leave a few hundred thou. of vested options on the table and jump board! I would be surprised if some Dell employees don't cash out and diversify at these nose bleed levels!

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