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

To: Amy J who wrote (174451)	5/9/2003 8:04:33 AM
From: steve harris	Read Replies (1) \| Respond to of 186894

amy, it's nice to talk about barrett's 350k options, but how about bryant's 1.3 million options in 2002? Steve

To: Amy J who wrote (174451)	5/9/2003 8:45:57 AM
From: rkral	Read Replies (1) \| Respond to of 186894

OT ... Amy J, re "I think the doubling up on the shares on the way down appears incongruent to investors." It may appear incongruent to investors, but that is what they should expect .. when the stock price declines over a few years. Consider .... A grant of 100,000 INTC NQSOs with an exercise price of $32 has a fair value of .. say $1.6MM. It follows that a grant of 100,000 options at $16 only has a fair value of about $0.8MM. So pretend you're an executive expecting .. and getting .. $1.6MM per annum in "non-cash" option compensation. And your last grant was the 100,000 NQSOs at $32. Would you really be happy then .. getting only 100,000 options at $16 .. for a value of only $0.8MM? Might you not be de-motivated? Might you not be looking elsewhere for better compensation? Does your compensation committee want you to feel that way .. and want that to happen? Regards, Ron

To: Amy J who wrote (174451)	5/9/2003 9:08:43 AM
From: GVTucker	Respond to of 186894

Amy, RE: But I'm in 100% agreement with the refresh Intel did in December, because (pure mathematics) the stock was underwater. The evidence was very solid that they needed to do it. I'm in complete agreement with it. But doesn't that go completely contrary to the theory behind stock option compensation? The selling point all along has been that when the stockholders do well, the employees do well. Stock options are a way of linking the two. By repricing options that are underwater, Intel in essence is telling us that it doesn't matter whether stockholders will do well or not. Management will get theirs. Stockholders lose a lot of money, no big deal, we reprice underwater options. If stockholders do well, well then, yeah, the two get linked.