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To: hueyone who wrote (63008)2/7/2003 9:27:59 AM
From: Amy J  Read Replies (1) | Respond to of 77400
 
Hi Hueyone, I forgot to respond to your post (which you repeated here, and is a good post).

Your post is excellent, but we're discussing different things.

Note: Percent <> dollar amount.

You're discussing distribution in dollar amount and in some cases the individual too, not the total employee SOP% as a percent.

In otherwards, you're discussing dollar amount, not SOP%.

It doesn't invalidate your post, but SOP% are SOP%.

And SOP% are industry standards. That's a fact.

RE: "3. That CEO pay buoyed by steadily increasing options grants has grown from 40 times the average workers pay in 1980 to roughly 515 times the average workers pay by 2000"

True point. But unrelated to SOP% being SOP%: where's the SOP% in the above? Probably reasonably fixed throughout the past five years (during the boom it went up a tad, then back down.)

Side note: If CEO pay goes up due to investors excess aka bubble, I think that's an investor issue, not a company issue. I think it might become a company issue when a stock drops a lot, say 50%, at which point new grants may want to match some type of sensitivity measurement of investor pain during such rare times.

But, if NASDAQ dropped by 75%, then CEO pay may have dropped to 515 - 75% = 129. Does that mean we're close to being to the levels we were at before? ("100")

Btw, Your post is about horizontal time slice (over decades). Very good post.

However, my post is about SOP% in a vertical time slice as John & I were discussing if total SOP% was excessive in a particular recent time-slice.

But even so, when one looks at it from a horizontal slice, I didn't see too much change in SOP% (at least in the private equity markets) over the boom.

SOP% may change a bit over a horitontal time slize by a few points, but in the vertical time slice companies have reasonably consistent SOP%.

Your post is really more about dollar amount, than %. (Valid points and excellent post, but unrelated to SOP% being reasonably fixed. (Note: Percent <> dollar amount.)

My/John's post was about total SOP, not a distribution of one member or two.

By the way, there's no stock option "abuse" (your words, not mine) these days. The entire Valley is pretty much underwater. Issues really happen mainly during bubbles for the most part. SOP% seem to be going down a tad these days (supply & demand thing), relative to the boom.

Regards,
Amy J



To: hueyone who wrote (63008)2/7/2003 9:46:03 AM
From: rkral  Read Replies (1) | Respond to of 77400
 
OT ... Huey, my guess is that SOP% ...

... is based on (not equal to) the difference between options shares authorized and options shares outstanding, or at least roughly so.

More specifically, it is likely the "option shares available" expressed as a percentage of common shares outstanding. In most financials, "options shares available" are presented in conjunction with shares granted, exercised, cancelled, reserved, etc.

Just my WAG.

Ron