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To: DuckTapeSunroof who wrote (383725)4/1/2003 5:44:44 PM
From: Techplayer  Read Replies (1) | Respond to of 769670
 
Buddy,

the funds need to be deployed, likely into the stock market, whether it is buying a companies shares or investing it in other ways. Essentially, it is money that will need to go into the markets. The comment was on Barrons 2-3 weeks ago.

Re: >>> Academic studies have recently shown that stock options make very poor motivators to 'incentivize' employee performance, anyway. But they provide a strong lure to trump up phony short-term earnings.

I believe that report to be skewed . I would say that since 2001, stock options have been less important to employers because the market has continuously declined, making the options worthless or so far under water that they stand little chance of moving into the green (unless you are in the same camp as YHOO, AMZN or EBAY...). Prior to 2001, options were a very important incentive, especially in technology related companies. Once the market has established some form of a bottom, I fully expect options to return to favor as a meaningful tool to attract and retain talent.

The rest of your post is excellent. thank you for the information.