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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: rkral who wrote (178091)	5/25/2004 3:51:07 PM
From: The Duke of URL©	Read Replies (2) \| Respond to of 186894

In all fairness, I think it is only the last 3 or 4 years that the top executive options grants have exploded upward. It would be interesting if you redid your numbers, to note the equity increase over those years and compare to granted and unexercised stock options. Also when comparing outstanding stock, due consideration must be made to contemplate unexercised options, which may represent an unstated obligation by the company to issue more stock in the future. And some contemplation of market cap, the total value of outstanding diluted issued shares went from 60 Billion to 180 billion, an increase of 300% while retained earnings grew only, as you suggest, 37%. How about them apples? True, Carl, and others, confuse the accounting for stock options with the fact and conditions under which they are granted, but some of his rant is not totally lost. The question is how many options have been granted to upper management and for what. For instance, Carl lambasts the attorney Dunlap for his one time bonus, but fails to remember that Intel skated a huge nti trust suit and likely demolition by Integraph type actions, which presumably, was successfully orchestrated by Dunlap and the lawyers under his control. Just how much is that worth? And when carl is rambling on about compensation, it is of interest to reflect on the Disney company. Eisner promised Katzenburg 325 Million dollars if Katzenberg did about 5 billion dollars worth of gross on such movies as Lyon King. Eisner then stiffed Katzenberg for the 325 Long. Katzenburg started Dreamworks which cost Disney about 5 Billion in future income, got a judgment against Disney and got his 325 PLUS, and may have cost Eisner his job. True, you need to know stuff like this before you start a rant on salaries, and Carl doesn't seem to take this stuff into consideration, But his rant about Pottruck and the compensation committee does have some truth. But the issue with Barrett must contemplate Tejas and Intel Capital, don't you agree?

To: rkral who wrote (178091)	5/25/2004 4:45:07 PM
From: Noel	Read Replies (4) \| Respond to of 186894

Finally, someone has put together a thoughtful argument for expensing stock options and backed it with quantitative analysis. This is a lot better than Carl's rants about greedy and dishonest executives. As someone pointed out, Intel top-level executives are underpaid compared to their peers at other companies -- even with stock options taken into account.

To: rkral who wrote (178091)	5/25/2004 6:52:32 PM
From: Ali Chen	Read Replies (2) \| Respond to of 186894

"And what about shareholders' equity? Well," It is really "well... nice statistics" Total stockholders' equity: 2003 2002 2001 2000 1999 37,846 35,468 35,830 37,322 32,535 15%/year, huh? "Even if Intel had expensed options, it would still have reported $40.9 billion net profit" I wonder how did you arrive to this ridiculously small sum of $5.1B. During the same 8-year span, Intel paid cash in amount of $32B out of shareholder's pockets to compensate employees without accounting for it as labor expenses. - Ali