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.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Don Lloyd who wrote (94370)	4/15/2001 9:43:02 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 436258

don, repricing options is so "last week." why? there are negative tax implications. msft didn't reprice options when their price cratered - the doubled down. yes, they just double the # of options at the lower strike price to avoid the tax liability associated with repricing. the #1 and #2 reasons to offer options to employees is to transfer wealth from shareholders to insiders and to take advantage of accounting loopholes to goose the income statement.

To: Don Lloyd who wrote (94370)	4/16/2001 1:19:25 AM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 436258

Don, while I understand all of these points, I take MAJOR exception that "repricing options realigns the interests of employees with those of shareholders". I believe it rewards inept management at the EXPENSE of shareholders. Recruitment should be unaffected, most option grants occur once or twice a year and are based on the current prices at the time of the grant...therefore it's in the interest of new employees to have the stock price DOWN at the time of the options grant. After all, there's no place to go but UP at the point (to paraphrase Jon Joseph<G>).