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

To: ELH1006 who wrote (6157)	5/22/2003 8:16:48 AM
From: Rock	Read Replies (1) \| Respond to of 25522

Companies use options b/c they don't consume cash, affect profits or reduce book value. They are essentially secondary offerings. They dilute the ownership of current shareholders, while maintaining the capital for the use of the management team. Like outlandish cash salaries, they can only benefit share holders if they result directly in job performance that produces value beyond the dilution AND that would not otherwise have occurred. The last point is the most important, IMO, b/c it implies that the payout must have been necessary to either recruit or motivate the executive to perform. What, the ego-boost and power of becoming the CEO of the premier semiconducter equip company (highly paid by any standard) is not enough for you? God save the world if we were all so shallow as to require this level of excess just to get up and come to work.