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Technology Stocks : IATV-ACTV Digital Convergence Software-HyperTV
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To: Mike Fredericks who wrote (3771)5/18/1999 12:13:00 AM
From: StaggerLee  Read Replies (2) of 13157
 
>>1) I stand by my earlier numbers, that if the execs truly received 2% of the market cap increase as a cash bonus that IATV would never turn a profit.

Bill Samuels' 2% market cap bonus is a completely separate issue. It has nothing to do with what is being voted on this week. Item #2 on the proxy authorizes management to grant themselves 1.5 million options, over and above the 5.6 million shares/options they already have. Bill will continue to get his 2%, regardless. That's the way I understand it.

As I said earlier, I don't think management cost themselves anything in opting out of the SARS plan. They merely limited their compensation (as legally defined), NOT the vested amount of their SARS. They also agreed to be paid in stock instead of cash for those vested amounts.

It's like, in March they were vested up to $15 and said "look, if you (ACTV) promise to issue us a bunch of stock next month, we'll sign a letter saying we exited the SAR Plan at $3 15/16." SAR Plans result in expenses. Issuances of stock generally do not. As long as ACTV follows through and issues the shares to management, nobody loses anything and ACTV avoids having to record an expense related to the SARS appreciation between $3 15/16 and $15. Management's only risk would be if ACTV unexpectedly declared bankruptcy in the intervening weeks, or something.

Again, this is all speculation. Hopefully somebody will find out the whole story tomorrow.

Not bad analysis, by the way....for a science guy <g>.
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