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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: michael97123 who wrote (31695)	7/21/2006 12:20:21 PM
From: The Ox	Respond to of 95738

One thing that should change is that options should not be given out on a constant basis. Many companies are giving away 15% to 30% of their quarterly profits automatically to their insiders, regardless of the company's actual performance. I know there are those who insist that the way to keep people in their high tech semi related jobs is to dole out huge options packages. I disagree with this constant process. Similarly, the upper managements are getting too high a percentage of these options. For some reason the mentality in these companies is that salaries just aren't good enough and that they have to be issued (potentially) millions of dollars in options to keep their staff. I just don't agree. Issuing options at the hiring process is one thing. Offering a new employee options that vest after 5 years of service is probably a very good idea. EDIT: For that matter, issue options packages at highering that are given out every 3 to 5 years for as long as the employee is with the company. Dangle the carrot, I have no problem with this type of approach. Issuing huge options packages quarter after quarter, year after year clearly is excessive and the shareholders are finally revolting and moving their investments to greener pastures. Keep in mind that the BOD, the CEOs, CFOs and upper managements control this situation. They are the ones excessively feeding at the trough. I will continue to follow this industry, yet I have been investing and trading more frequently in other sectors. I think we are seeing the entire investment community doing the same thing. This transfer of wealth from the investor to the insider has to stop. Period. If the insiders "don't get it", then they will continue to see their stock prices fall and languish...and deservedly so! They appear to be saying the market: "it's my toy and I'll do with it as I please". Fine. Just don't expect anyone to invest in your company if you continue to take care of only your insiders. Enough is enough. I would like to see a CEO stand up and be counted on this issue...but I know I'll have a very long wait.