>Did you follow what they said about why they lost money in the last quarter? Something about $14 million in "compensation" due to a plan that has now been amended? (Gee, I wonder who got that, Mr. Park or Mr. Lee, I suppose.)
Yeah. It's detailed in the 10Q and the document in its entirety is in the 10K. I read both a while back, but lost interest, as Maxtor wasn't potentially investable till now.
Here's the 10Q abridged version:
The Company adopted an Amended and Restated 1996 Option Plan in February 1998 to remove the variable features, and offered and re-issued new fixed-award options in April 1998 for the majority of employees which had previously held variable options. In connection therewith, the Company recorded compensation expense related to the difference between the estimated fair market value of its stock as of March 28, 1998 and the stated value of the Company's options. Compensation cost was reflected in accordance with Financial Accounting Standards Board Interpretation No. 28, "Accounting for Stock Appreciation Rights and Other Variable Stock Option or Award Plans."
As I recall from memory (be wary, be very wary), when Hyundai took out Maxtor, the intent was always to bring it back public somewhere down the line. The carrot was a boatload of options awarded to Mike Cannon. There were certain requirements for them to vest... something about profitability for a few quarters... but an IPO would vest them all immediately. I guess they fixed it so that he wouldn't get a huge payday now that the IPO is predicated on weakness rather than strength.
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I find your practiced outrage at the Korean mismanagement amusing. Incredible feats of management stupidity are always based on one thing and one thing only: excessive hubris. A trait not unknown to us Americans, I might remind you.
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