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.

Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (172630)	1/28/2003 8:40:36 AM
From: Dan3	Respond to of 186894

Re: It is also an insult during difficult times like to exercise options and sell the shares immediately. If he's certain the stock is going to fall, he'd be a fool not to.

To: Proud_Infidel who wrote (172630)	1/28/2003 8:55:30 AM
From: bacchus_ii	Read Replies (1) \| Respond to of 186894

RE:"It is also an insult during difficult times like to exercise options and sell the shares immediately. A slap in the face of all who have held on through the downturn or have even added to their positions." Would be very unwise not to sell immediately with the "ATM" IRS rule that force him to calculate profit at exercise time, not at selling time. Gottfried_II

To: Proud_Infidel who wrote (172630)	1/28/2003 2:51:05 PM
From: Windsock	Respond to of 186894

Re:"Why is he basically given millions of shares of stock through the granting of options?" It is called incentive compensation. Instead of cash you get stock options that become valuable only if performance is good as measured by shareholder value.

To: Proud_Infidel who wrote (172630)	1/28/2003 8:30:18 PM
From: Saturn V	Read Replies (1) \| Respond to of 186894

Ref <Options, to a large measure in their current iteration, require no risk whatsoever on behalf of those receiving them. This is wrong in my view. ...It is also an insult during difficult times like to exercise options and sell the shares immediately. A slap in the face of all who have held on through the downturn or have even added to their positions> Barret in this case did take a risk, and lost out like a lot of us. The options in question are ten years old. Most options are exercisable in a minimum of 1-5 years. So these options were exercisable at least five years ago. If Barret had exercised them 5 years ago and cashed out he would have made a much bigger bundle. I dont think that Barret and Co have abused the options as at Enron and other places. Jerry Sanders routinely exercised all his option shares and dumped them within a year. He played the stock market cycle to a T, and did not have long term ownership in AMD stock. Barret and Co. have hung on for the long term thru outright ownership, and vested stock options, and thus their financial self-interests and those of the stockholders have been congruent. A few years ago the compensations of various company managements were compared, and the compensation for Intel's top management was perceived to be relatively low, while for AMD it was blatantly high. Unfortunately at times like these we are all looking for scapegoats and villains. Any manager making money of the company stock is resented.