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Technology Stocks : Dell Technologies Inc.
DELL 133.35+0.1%Nov 28 9:30 AM EST
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To: Chuzzlewit who wrote (52186)7/18/1998 6:35:00 PM
From: Meathead  Read Replies (1) of 176387
 
Chuzz, employee stock options are not all that bad and have
very positive effects which are difficult to directly quantify.

For compensation purposes, Dell can reward and retain
key individuals without paying exorbitant salaries which
would increase OPEX.

Of utmost importance in my mind is the ability to "retain"
this top talent. Dell was not built, and is not run by
Michael Dell alone. Many folks, at all levels of management
as well as individual contributors from finance to to manufacturing to engineering are brilliant individuals and have the ability
to work anywhere they want and write their own ticket. Stock
options provide Dell with the ultimate set of golden handcuffs.

A company needs exceptional employees to prosper. If you are
playing the salary game only, a key contributor will leave for
a 20% salary bump in a minute. Dangle the million dollar
carrot (stock options) in front of them and you have a dedicated
and focused employee who is hell bent doing everything he/she
can to make the company more profitable. This attitude permeates
the organization and becomes infectious.

Like I said, this is not directly measureable but the indirect
benefits are right there in front of us each quarter. This
kind of compensation is one of the most important differentiators
between mediocre companies and powerhouses like Dell.

MEATHEAD
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