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

To: Ali Chen who wrote (180941)	4/29/2005 3:18:11 PM
From: Tenchusatsu	Read Replies (1) \| Respond to of 186894

Ali, I wonder how do you propose to negotiate? Majority of options go to current employees as performance bonuses, not to new hires. How do you think this can be negotiated? By walking away? In this economy? You must be kidding. Seems like in this economy, there are a lot of other ways to screw over employees than simply giving them worthless stock options in lieu of cash compensation. Tenchusatsu

To: Ali Chen who wrote (180941)	4/29/2005 5:34:54 PM
From: Elmer Phud	Read Replies (1) \| Respond to of 186894

Ali In any case, you all deviate from the main fact, which is that last quarter Intel sold its stock to employees for $0.5B, but had to purchase the same shares back on open market for $2.5B effectively spending all their profits on this transaction. That's not the way it works. The shares exercised this year were supplied by shares purchased years ago at the time of the grant and at the same price as the grant. The shares purchased this year are backing the shares granted this year at today's price, not the shares exercised this year.

To: Ali Chen who wrote (180941)	4/29/2005 8:51:34 PM
From: Chuck Linsley	Respond to of 186894

Ali, Majority of options go to current employees as performance bonuses, not to new hires. How do you think this can be negotiated? At most of the companies for which I have worked, options were granted to employees at the time they were hired. (Strictly speaking, the number of options was set as part of the compensation process. The grant was actually made at the next board meeting.) At one company that did not offer options, the negotiation went something like this: Me: My last salary was $X and I had stock options worth $Y. Them: Well, we can't offer you options. Would it be ok if we offered you a higher salary, instead? Presumably, the employee could at least attempt to negotiate such a deal. No guarantee the employer would go for it, of course, since the employer gets a benefit from providing the employee with options. Chuck Linsley