Options for employees is the reason that some high-tech company shares go up (IMO). There is no guarantee, of course, but if the shares go up the employees profit from their options. If the shares don't go up, the employees do not profit.* It only costs the stockholders if the shares go up. Now I ask you as a shareholder, you selfish swine<g>, would you rather own stock in a company that enriches its employees as the shares increase in price, or one that protects stockholders equity by keeping the stock from going up to cheat the optionees. I believe there is a strong relationship between quality of management, quality of technical effort, and incentives tied to economic results and price per share. The differential performance of MSFT, DELL, INTC, and CSCO depends on their dominance, but if you look at their 10 year charts you'll see that not long ago they were very small. Wonder how they got so large and valuable?
*unless the company reprices, like AMD particularly. |
