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


To: Chuzzlewit who wrote (79867)11/13/1998 12:32:00 PM
From: TigerPaw  Read Replies (4) | Respond to of 176388
 
Options Perhaps if enough investors begin to holler foul at this practice it will end.

The company wide options were granted on Nov 2. The reasons for the options are good for Dell investors as well as the employees. In Austin there is a tight labor market and competition for employees is fierce. The largest group of Dell employees are those who sit on the phone all day (and night for some) taking orders or listening to one person after another who has some kind of problem and wants help.

Many of these people just get tired of listening and look for work elsewhere. This is after getting extensive training that is much in demand. With stock options which are vested over a number of years these people have more incentive to stick around. When portions of the option vest the employee has access to a lump sum amount which based on past history would be a couple thousand dollars after a year and growing beyond that. This has a far larger effect than a nickle per hour raise to convince that employee to stay around another year. The longer they stay, the better they are at their job, and the bigger the incentive to stay longer. This keeps actual expenses lower which helps the shareholder.

TP



To: Chuzzlewit who wrote (79867)11/13/1998 12:33:00 PM
From: Mohan Marette  Respond to of 176388
 
Compaq holds back in Australia-Oh what happened?

Paul:

Here is little something I found on our competition.Wonder what happened,I thought it was too easy and that they are going to eat DELL's lunch! Oh well.
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COMPAQ AUSTRALIA HOLDS BACK ON DIRECT SALES


SYDNEY, AUSTRALIA, 1998 NOV 12 (Newsbytes) -- By David Frith, Computer Daily News.Compaq Computer Corp. has moved to embrace direct-selling to end users, as rival Dell did before them, in the US, but the Australian operation says it won't be introducing the system here, at least for the time being.

It's also holding off on a local launch for the Prosignia, a new range of business PCs which Compaq USA has positioned for the direct sales channel. However US reports say the Prosignia line will be available in overseas markets in the first half of 1999, largely through existing distributors.

Some elements of the US package are being adopted here, Australian spokespeople say: for instance "Compaq Capital", a leasing program already in operation; and CarePack, a support package.

Some observers believe it is inevitable that not only Compaq, but also Hewlett Packard, IBM and other top-brand makers, will all launch direct sales operations in Australia in the near future; Apple has already announced an early 1999 start for its online Apple Store.

Ben Reeve, Compaq Australia's channel marketing manager, chose his words carefully to tell Newsbytes Thursday there were "no immediate plans" to adopt the direct selling model locally. Corporate spokeswoman Ann Eckert, pressed by Newsbytes, used similar language, but added: "In this industry you can never say never."

IDC Australia's Graham Penn noted that Compaq Australia MD Ian Penman had categorically assured channel partners the company would do nothing to affect their livelihood. But he pointed out Penman had inherited some direct selling with the Tandem and Digital acquisitions, and Compaq was also engaged in phone and Internet sales of PCs via third parties such as Harris Technology.

In the US, Compaq's move is seen as a renewed assault on direct seller Dell, which has snatched the lead over Compaq in some surveys of the business PC and server sector. It also suggests that a build-to-order and "channel assembly initiative", started after a trial in Australia, has not been sufficient to contain Dell.

Reported By Newsbytes News Network, newsbytes.com