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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator -- Ignore unavailable to you. Want to Upgrade?

To: 16yearcycle who wrote (15831)	1/6/1998 12:28:00 PM
From: Reginald Middleton	Read Replies (2) \| Respond to of 24154

The following is a tid bit that I am putting on my site to show the power of incentivizing employees with the use of properly structured stock option programs (assuming your stock is stable). This is not to knock NSCP, for I think they are the best software company to come around for some time, but to point out exactly how powerful MSFT's compensation program is in the scheme of things. NSCP Annual Volatility = 78.14% Volatility for Last Month = 126.5% Valuation table (descending order) for employee stock options of NSCP Corporation Stock option $7.43 $0.0163 $9.28 $0.0436 $11.14 $0.0926 $12.99 $0.1689 $14.85 $0.2771 $16.71 $0.4206 $18.56 $0.6017 $20.42 $0.8220 $22.28 $1.0822 $24.13 $1.3826 $25.99 $1.7227 $27.84 $2.1020 $29.70 $2.5196 $31.56 $2.9744 MSFT Annual Volatility = 33.54% Volatility for Last Month = 39.54% Valuation table (descending order) for employee stock options of MSFT Corporation Stock option $52.15 $0.5605 $65.19 $2.3751 $78.23 $6.1325 $91.26 $11.8582 $104.30 $19.1646 $117.34 $27.5696 $130.38 $36.6707 $143.41 $46.1876 $156.45 $55.9433 $169.49 $65.8331 $182.53 $75.7970 $195.56 $85.8014 $208.60 $95.8281 $221.64 $105.8669 As of today, a MSFT employee who recieved 1000 3 yr. stock options one year ago issued at the money would be worth $420,830 as compared to options that are practically worthless for the NSCP employee. The options would be worth $60,000 except for the fact that they are incentivized to exercise the structured options in lieu of selling them outright. From an empirical and financial point of view, there is significant incentive given to MSFT employees contrary to what the media would have many believe. The models that run these calculations are freely available for download at rcmfinancial.com

To: 16yearcycle who wrote (15831)	1/6/1998 9:38:00 PM
From: Charles Hughes	Read Replies (1) \| Respond to of 24154

>>> I practice near Redmond; I know no one who could be called a "higher up."<<<< Well, since you make some of your living from, and give treatment in a very intimate fashion (hands on chiropractor, I assume), to some of the MSFT rank and file, (presumably), I guess you can be forgiven for becoming a sympathizer for The Evil Empire;-) You depend on these people and you know them on a personal basis. I am of course filling in the blanks here. But that's enough nicey-nice. I also want to note that none of the above should confuse you into thinking you know diddly-squat about software design ;-) Nor are you in a position to have been well and truly screwed by those folks, as many investors and employees of other computer companies have been. So you will possibly never understand our outlook, or why we have to fight back. Chaz