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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (160036)	5/24/2004 12:37:49 AM
From: Madharry	Read Replies (1) \| Respond to of 164684

Because the idea of granting options is that if executive performance results in the company doing well -share prices increase and both the shareholder and employee benefits. If the ceo is given say 500,000 options with a price at 50 and he can safely assume that if a drug candidate that he has been touting for years fails to advance the stock plummets to 10 and then his options get repriced to 10, he potentially wins irrespective of his performance, in fact when the price subsequently recovers he now collects a bonanza when he would not have received squat, while investors who have held through thich and thin with their capital at risk have finally broken even, investors on margin have been wiped out, and most investors will have taken substantial hits to their portfolio and moved on.