Hi Art: Thanx for the info, I'll try to find the S8 and read it,
personally I think a lot of companies have gone to doing this,
and it stinks..somebody gets burned on the deal, either the
employee..( who is reduced to were he will do or say just about anything to defend the company ) or the share holder has his
end diluted. They rationalize it all kinds of ways but it's
just a carney trick.
The old way employess could buy shares, and the company paid
some matching funds, so he got them at a discount..but they
were bought from the float, and that kept the shares from
being diluted, the expence was an employee bonus, and was
part of the 10q..sure it reduced the net profit, but at the end
of the quater every one knew were things stood and it was honest.
----------------------
these options out front, and what ever price..just create a
breeding ground for dishonesty..and you can't project the
real cost..it's not possiable. AOL is not the only one playing
this game, and I doubt thy are into it as bad as some, I know
they are not as bad as ASND they can argue it from now to dooms
day. And people can take either side..and make it look good or
bad..the thing is there is "NO Answer" in some cases it may be
good and in others bad..and there is "no way to tell up front"..
and if any one says there is they are full of crap, or just plain
lying. I'm aginst it because it is not predictable..and is
prone to breed dishonesty. Give them shares at a discount, buy them
at market then put the shares in an employee pool, that they can get when they leave or after say 2 years. Then every one knows what
is going on and the expence is accoutable as you go along.
This robbing peter to pay paul and thinking you can get something
for nothing is born from systers, and con men.
But onec agine it's not just AOL that has caught the fever..seems to be spreading in the tech sector a lot.
Jim |
