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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: sandintoes who wrote (15209)	12/1/2006 10:00:48 PM
From: Peter Dierks	Read Replies (1) \| Respond to of 71588

The democrats limit on the deductibility of wages in excess of $1M was one of the stupidest ideas ever. It has much to do with the current problems with back dating. It had much to do with the insane stage of the dot com bubble. The option was the most efficient way to overcome the artificial limit on wages for great managers. You want to fix the insane option exercise windfalls? Get rid of the limit. Let great people make $10M and let stockholders see the real cost of management. Options are a stealth theft from stockholders. The problem is the limit, not the options. Companies lost a tool, and thus they found a new one. If you try to plug the options dam, the water will find a new hole. Soon money will flow through it like a torrent.