Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Sam who wrote (1760)	4/17/2000 2:43:00 AM
From: Gus	Read Replies (1) \| Respond to of 1989

Please, Sam, don't stop on my account. <g> Your point about the IRS keeping a closer eye on the public or private Seagate was priceless because like many multinationals, SEG keeps part of its profits -- tech industry average is about a third -- in the country of origin instead of bringing it back to the mainland. You will recall that virtually all the disk drive makers have had or still have major IRS issues concerning this and other issues because 80% of disk drive production is in Asia. What I'm curious to find out is whether this case will establish new legal ground in the area of employee options that will translate to new accounting rules and a new class of common stock --- formalizing de facto super-voting rights and delineating more clearly the limits on, say, the repricing of options that are universally accepted as part of employee compensation?. It would seem to me that the way the SEG employees were persuaded to align their interests with that of the LBO group --- by the vesting of all unearned options --- has to be fair game to the lawyers that specialize in this field. Why is it that I'm not bothered at all by the mental picture of the proverbial rapacious lawyers highly incentived with the opportunity to contribute to the establishment of novel legal principles and make oodles of money off a company with the kind of run-ins that SEG has had in the past. Like I said before, they triggered the law of unintended consequences by being too cute with this deal.