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Technology Stocks : Siebel Systems (SEBL) - strong buy? -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (6777)	6/11/2003 7:06:23 PM
From: Don Lloyd	Respond to of 6974

Lizzie, the figures I have heard bantered around as within reason for options grants for any specific fiscal year, are between 1-3% (assuming some of these granted will expire worthless)... so this represents around 2% dilution in a hypergrowth phase company. The unacceptable ranges for options grants are supposed to be in the 5-7% of O/S shares, per year. Does that sound reasonable or consistent? There are some who say options users should not grant more than .5% of O/S shares per year, but that is fairly unreasonable if there are pay concessions going along with these grants imo. My point of departure would be an actual long term dilution rate of 10% of the LT revenue growth rate, not allowing stock buy backs to reduce dilution. Regards, Don