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To: Haim R. Branisteanu who wrote (41054)2/23/2000 1:22:00 PM
From: sandeep  Respond to of 99985
 
Everybody knows that high tech stock options in immature businesses are creating problems for mature businesses. I doubt that the senators don't know that.
However, what is the solution to this problem ? It is not raising rates or trying to create fear in the market. This has been affecting mature businesses more than hyper-growth ones.
Your complaint about misleading financial statements should be directed against SEC. I agree with your sentiments here. Raising interest rates and creating fear is not the solution to this problem, IMHO. Stricter financial reporting standards, increased margin requirements will go a long way to address your complaints.



To: Haim R. Branisteanu who wrote (41054)2/23/2000 1:32:00 PM
From: Jorj X Mckie  Read Replies (1) | Respond to of 99985
 
Haim,
Why should a secretary working for the High tech company A with no profits, earn more that a more talented secretary working for me as an example.

The simple answer is that they are taking a risk by working for options and therefore they deserve the extra compensation. Though there are many anecdotal cases where secretaries have gotten wealthy with options, but you don't here about the ones that had options that either stayed underwater or only made nominal amounts.

I have worked at a couple of startups where I made very little salary and had options as well as a couple of tech companies that actually made money where the options didn't payoff. Only one of my six jobs in the tech industry has paid off with the options (my current job).
JXM