Employee Stock Options
Hi Rudedog.
While I generally agree with your assessment of ESOP's
and the motivational breakdown that can occur in some
individuals, let me offer the thread some insight into my
experience in dealing with some of the Dell elite.
I have known quite a few Dell folks over the last
decade. Many are now super wealthy... tens of millions
in individual net worth. What has surprised me the most
is that many have not retired nor do they plan to in the
near future. Sounds counter-intuitive doesn't it?
If it's no longer about the money, where does the
motivation to continue come from?
This has been a hot topic of conversation once business
is out of the way and the personal stuff ensues.
"But Jim, you're worth over $20 million!...."
"Yeah, but I'm only 40, I'm too young to retire, what
will I do? This is what I do and I do it better than
anyone... I like it that way..."
The psychological aspect of this somewhat unique phenomenon
isn't difficult understand and it seems to exhibit
commonalities where early retirement plans have been
scrapped.
For years, these individuals have poured their heart, soul
and intellect into their profession and it has become their identity.
It's no longer a burdensome 9-5 job but a source of pride
and accomplishment. The fear of failure has been eliminated
and along with it, much of the associated job induced stress.
Furthermore, these individuals feel that they are more
effective in their positions than ever. They feel a great
sense of accomplishment by mentoring others and helping
the company avoid many of the common mistakes made by
the younger, more aggressive and less experienced employees.
They have become the elder statesmen of their profession who
truly enjoy getting up and going to work and would feel lost
and disconnected if they prematurely severed the corporate
umbillical cord.
Is this level of compensation deserved? Most would say
no. But it probably was never intended to be, it just
became that way. God bless capitalism.
Interestingly, if you asked these folks ten years ago
what they would do it they had a million dollars, the
overwhelming response would be "Oh, I'd retire in a minute".
Funny how we're positive that we know exactly what we'd do
in a position we assume we'll never be in.
While there has been a wave of early retirements at Dell,
those who remain aren't generally sucking off the
corporate fat. Of course there are exceptions as you
noted, those who got lucky and are well off enough now
but won't leave un-vested money on the table. These guys
will be gone in 2001-2002. Sure, a certain percentage of
them are performing just well enough not to get fired.
But I'd bet 90% still put a lot of effort into their
profession.... I mean really, how many folks actually have
so little pride that they can handle being viewed as a
no-op by their peers day in and day out? The Dell culture
is not conducive to hiding in a corner and shirking
responsibility.
Closing thoughts. Options that can create this kind of
wealth are generally only granted to stellar performers...
a relatively small percentage. Stellar performers don't
happen by accident. A strong work ethic, a desire to
be the best, to win and be admired by your peers are
a prerequisite. These traits don't suddenly vanish when
you become rich.
Enjoy your posts..
MEATHEAD |
