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.

Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (30661)	2/17/2002 8:15:38 PM
From: Boca_PETE	Read Replies (2) \| Respond to of 99280

itsallover- RE:("dilution from options is for the explicit purpose of making abundantly rich members of upper management at the expense of the stock-holder.") When you examine the cash flows, you can't help but realize that stock options are compensation paid for directly by the shareholder, not by the company. But they only have value if the executive perform by increasing shareholder value and demand for the stock. That's done by implementing the most profitable business model, outperforming the competition, and continually improving because the competition is most always doing that. Most large successful companies design competitive compensation packages to retain talent they need. If they did not do this, their executives would desert to companies that had the best compensation packages. It's not about class warfare - nobody is seeking to ream anybody! It's about supply and demand for competent talent. And yes, the system occasionally breaks down when dishonest people who lack integrity collude like appears to have happened at Enron. But that's no reason to tar and feather all accounting principles and all auditors like the media likes to do to increase ratings. P