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Technology Stocks : Wind River going up, up, up!

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To: Michael Greene who wrote (3295)6/22/1998 8:36:00 PM
From: peter grossman  Read Replies (1) of 10309
 
Michael,

These options may be in lieu of salary, but if I understand it correctly, the total value would amount to $11.2 M (28M x .40). This amounts to $20, 000 - $30,000 per employee typically vested over four years. This seems like a reasonable incentive to me. more so because its value is measured by the same yardstick my investment is.

It seems unfair to "account" as if it were earnings because they can be exercised only once. Most likely, 1/10 of the options (equivalent of .04 per share) would be exercised per year. And they are not paid out of operating earnings.
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