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To: wolfdog2 who wrote (1232)2/25/2001 4:12:37 PM
From: AhdaRespond to of 24758
 
Do not many of this people tie options in as part of the total package they receive for the year?

If i am correct there will be a reduction in spending that will reverberate through entire areas of heavy tech economic influence.



To: wolfdog2 who wrote (1232)2/25/2001 5:25:02 PM
From: M. Frank GreiffensteinRead Replies (1) | Respond to of 24758
 
simply issue new options with lower strike prices at best.

How does this solve the overhang problem? You are still left with the same # of options and the same degree of earnings dilution. Remember, options are not treated as an expense under GAAP. This is the dirty little secret of the Nasdaq's rise.

The only thing repricing will do is make employees happier. The only thing that will make shareholders happeir is to let the options die. But companies are more focussed on keeping middle management happy than the shareholders. Its a part of the Silicon Quiche Complex.

Doc Stone