Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year -- Ignore unavailable to you. Want to Upgrade?

To: Melissa McAuliffe who wrote (2245)	9/20/1998 3:11:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 4509

Melissa, if you read the release closely, you will see that it did not say anything about management. It only said executive officers. And it did not say anything about them being excluded -- only that they wouldn't be affected. The central issue I raise is if options are to be used as an incentive, then it defeats the purpose if repricing occurs as a result of falling stock prices. I am reminded of a parent giving a child an allowance, and when the allowance money is all spent the parent gives the child more money. It defeats the purpose of an allowance. The fact is that these options are not incentives at all. They really are just disguised compensation. Just as we had a problem with off-balance sheet financing to hide the debt of corporations, we have a problem here with off income-statement expenses. The true cost of labor and the true size of management compensation is effectively hidden from shareholders. Repricing is the proof of just how perverse this system is, and how detrimental it is to investors. TTFN, CTC