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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Lucretius who wrote (42717)	5/17/1998 3:50:00 PM
From: Chuzzlewit	Read Replies (3) \| Respond to of 176387

Lucretius, maybe we're talking in circles. I am (and always have been) very upset with accounting standards that are not accountable to share holders. I especially don't like options-based compensation when there is no requirement for the recipient to hold the stock for a specified period of time. I got the impression that you were saying that Dell's growth is the result of smoke and mirrors. Clearly, that is not the case. What is the case is that current accounting standards do not explicitly state the costs of executive compensation which are borne by the shareholders rather than the company. That cost comes in two flavors: the differential between the cost of the stock on the open market, and the exercise price of the option (this is the Dell case because Dell has not grown shares o/s), and the dilutive effect of all of those additional shares hitting the market (this is not the case with Dell). If we are saying the same thing, great. I think that if more shareholders appreciated the costs of these options they would not allow management to reward themselves so handsomely. I prefer cash. TTFN, CTC