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

To: Adam Nash who wrote (29234)	10/10/2000 11:03:09 AM
From: donjuan_demarco	Read Replies (2) \| Respond to of 213176

"If the employees have options priced at 45, they could generate a 100% return from this point and not see any return. That just isn't matching incentives to desired actions." Yes, and if an investor bought AAPL at 45, he would also have to generate a 100% return to break even. When an employee agrees to be compensated in options, I think it is understand that he will be subject to market risk. By re-pricing the options, the employer allows the employee to enjoy all the upside, without being subject to the possible downside. Therefore, there is no "incentive" for the employee --- he knows that he will win either way.