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 : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (6138)	5/21/2003 11:55:12 AM
From: Proud_Infidel	Respond to of 25522

BRAVO!

To: Kirk © who wrote (6138)	5/21/2003 12:02:11 PM
From: NAG1	Read Replies (2) \| Respond to of 25522

Being hired as the ceo of a big company should not be the same thing as hitting the lottery. Things like this should be tied to performance. AMAT could be run into the ground and the stock worth half of what it is today in a year and still this guy could walk away with 2 million dollars. If I was working at amat right now, it would make me somewhat resentful of this new guy and this type of deal may impede his ability to manage. Definitely not a good move in my opinion. Neal

To: Kirk © who wrote (6138)	5/21/2003 12:27:17 PM
From: Cary Salsberg	Respond to of 25522

RE: "...perhaps you have just shown that you don't understand the option issue?" AND RE: "Options are a SHAREHOLDER expense, not a company expense." I understand the option issue! "Company expense" refers to the income statement. Dilution, SHAREHOLDER expense, and "company expense" all influence the balance sheet, specifically, the per share book value. RE: "This is what Buffett and others are crying FOUL over!" There is no FOUL. The question should be, are options an operating expense or a form of profit sharing. Both, diminish stockholder's equity. Operating expenses are NOT discretionary. Profit sharing is usually discretionary. With options, there is the discretionary characteristic and the implication that there will be future "profits" to share, e.g. stock price appreciation.