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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?


To: Joseph Beltran who wrote (47865)6/12/2001 4:11:09 PM
From: LemurHouse  Respond to of 70976
 
Joseph, thanks for posting these links to two (actually three) excellent articles on the grotesque excess that are now commonplace in executive compensation, and how the use of stock options distorts the balance sheet and hides the true cost of these options from the shareholders.

These are well worth the time to read, and I highly recommend them to anyone here thats more interested in investing than in arguments about politics or how many angels can dance on the head of a pin.

The practice(s) are completely indefensible. Unfortunately I don't see any solution to the problem, and it is discouraging that the CEO's and Directors interviewed for the middle article don't either. As one of the fellows said, its a corrupt system (CEO compensation system). But investor awareness would seem to be the first and most necessary step towards any sort of correction.

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