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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Tomcat who wrote (77667)	2/8/2000 10:10:00 AM
From: rudedog	Respond to of 97611

tomcat - yes, this is public knowledge, but I can't find the link at the moment. They WERE long term incentives when they were granted in summer of '99 with the stock price at 23... It went something like this - as a part of Capellas' signing agreement he got options on 300K shares or something like that - 100K to vest if the stock price is at 34 or 35 at the end of march, 100K to vest if it is at 50 at the end of 2000, the rest to vest if it is at 60 by the summer of 2001 - I'm making the details up but it was something like that. It was announced partly to show that the CEO had a big incentive to enhance shareholder value both short and long term. it would be tempting for Capellas to start talking up the stock whether Q1 is doing well or not. After taking the first 6 months of his tenure to establish credibility and predictability, I doubt if Capellas would put that at risk for a short-term pop, especially since it would put the rest of his incentives (as well as his job) at high risk...