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: TI2, TechInvestorToo who wrote (6997)	8/28/2003 2:38:05 PM
From: Big Bucks	Read Replies (1) \| Respond to of 25522

TI2- good article....I am biased on the issue of stock options. As a regular employee of AMAT I was occasionally offered options that were about 15% below some recent targeted closing price (only when the company was booming) and did receive profit sharing (from 8-15% on annual earnings)during prosperous times, but not if the company profitability was low. I was required to hold the options for up to 3 years (for employee retention incentive), which may or may not have been profitable, unless I happened to catch the top of a cycle. The top dogs were given options at around 20-25% of the stocks price, regardless of the fortunes of the company, which for all intents and purposes means that they were literally guaranteed profits greater than 80% without seeming risk. Most of them make/made greater than 300% to 400% on their options when they were exercised. I don't know how long executives are required to hold their options, but it seems that they ALL generate extremely profitable windfalls due to how they are initially priced. IMO,the issue of executive compensation and perks will be the major issue of funds and investors. It has gotten way out of control, and investors and company bottom lines suffer because of it. It is the difference between a profitable company or insiders lining their pockets at the expense of the shareholders.....BB