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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?


To: Wyätt Gwyön who wrote (114179)2/24/2002 2:17:30 PM
From: Peter J Hudson  Read Replies (1) | Respond to of 152472
 
Mucho,

<<it is certainly an opportunity cost. instead of giving those shares to employees, they could've sold the same shares on the open market and reaped an extra 7.5BILLION DOLLARS (more money than QCOM has made in retained earnings by almost 20-fold). so they left some very large profits on the table.>>

Opportunity cost is a real stretch. Qualcomm probably would have been better off investing that money in ebay too.

Any criticism of employee stock option incentives has to be directed at the terms of the offering, not the resulting value at exercise. The huge profits that QCOM employees made on their company stock plans are no more sinister than the huge profits you made during the same period.