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Technology Stocks : Compaq

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To: Lynn who wrote (54672)3/24/1999 12:08:00 PM
From: rudedog  Read Replies (1) of 97611
 
Lynn -
I had a conversation with a senior CPQ executive (one of EP's reports) on this topic about 2 years ago. He said "people should understand that executives need to diversify, if only to keep their perspective when making strategic decisions. If all of my money is in CPQ, and I have to make a tough call - say take a short term hit to solve a longstanding business problem - I might be reluctant to make that call if it will at the same time make it hard for me to pay for my summer house. I don't think we need that distraction. No matter how objective we try to be, personal issues - my wife's mood, for instance - will have an impact. Every one of the senior staff has so much invested in CPQ that the trick is not to be solely focused on short term performance".

I do get a little concerned when executives like Mason sell such a large part of their available options, but keep in mind that on a 5-year vesting schedule, that "available" position builds back up pretty quickly.
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